Gold prices edged higher on Wednesday climbing above former resistance which is now support near the 50-day moving average at 1,185. Resistance is now see near the mid-November highs at 1,221. The recent ease in the dollar, which was buoyed by strong German machinery orders, has paved the way for higher prices for the yellow metal. The 10-day moving average is edging closing to the 50-day moving average and is poised to cross over which would show that a medium term up trend is now in place.
German machinery orders recovered in November, with total orders up 5% year over year, after falling -10% in the previous month. Domestic orders rebounded 3%, while foreign orders growth accelerated to 5%, although the less volatile three-month trend rate is showing a slightly different picture, with total orders still down -2%, a marginal improvement form the -3% in three months to October.