Gold prices moved higher on Tuesday, following a long holiday weekend, as the dollar continued to weaken following a strong Eurozone Manufacturing PMI. Prices broke through resistance which is now seen as support near the October highs at 1,306. Resistance is now seen near the September highs at 1,357. Momentum remains positive as the RSI (relative strength index) surged to a fresh 12-month high, but the current reading of 75, is well above the overbought trigger level of 70 which could foreshadow a correction.
Eurozone Manufacturing Confirmed Higher
Eurozone manufacturing PMI confirmed at 60.6, up from 60.1 in the previous month. National results were mixed, however, with the Italian reading falling back to 57.4 from 58.3 and the French reading revised down to 58.8 from 59.3 reported initially, although this is still a 20 month high. Readings remain at record highs in Germany, Austria and Ireland and even the Greek number is now firmly above the 50 point no change mark at a 114 month high of 53.1.