Gold Price Prediction – Prices Bounce Slightly Follow Surprise PMI DataThe dollar eases allowing gold prices to bounce slightly
Gold prices rebounded ahead of support levels, as final PMI’s from the EU came in better than expected. Gold was hammered on Tuesday as US data continues to show that the last Fed cut could be the last for a while. US yields moved lower, which helped ease the upward pressure on the US dollar which paved the way for a bounce in the yellow metal.
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Gold prices moved higher on Wednesday bouncing just ahead of support near the 100-day moving average at 1,475. Prices are rangebound and prices continue to chop sideways. Resistance is seen near the 10-day moving average at 1,499. Short term momentum has turned negative. The fast stochastic generated a crossover sell signal. Medium-term momentum is neutral as the MACD is poised to generate a crossover sell signal. The MACD histogram is printing near the zero index level with a flat trajectory that points to consolidation.
EU Final PMI’s Surprised
EU services and composite PMIs surprised traders coming in at 52.2 and 50.6, respectively, which was slightly better than expected. Additionally, factory orders in Germany were also a pleasant surprise. Orders bounced back 1.3% month over month, well above expectations for a 0.1% gain and last month’s revised reading of -0.4%. The year over year rate came in at -5.4% versus a revised -6.5% in August. Eurozone retail sales also rose 0.1% month over month in September versus a flat reading expected, while August was revised up to 0.6% from 0.3% previously.