Gold Price Prediction – Prices Close a Fresh 6-Year Highs

David Becker
Gold Bars and Dollar

Gold prices broke out on Tuesday, as traders came back to work looking for an alternative currency. Geopolitics and safe haven status continue to drive gold prices in conjunction with the dollar. US yields moved lower and the dollar whipsawed following softer than expected ISM manufacturing data which showed that US manufacturing in August contracted for the first time in 3-years. The dollar broke out further and then whipsawed lower following the ISM data which helped buoy gold prices. UK August construction PMI came in lower than expected and Monday’s manufacturing PMI came in below forecasts.

Trade gold with FXTM

 

Regulated By:CySEC, FCA, FSC

Foundation Year:2011

Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus

Min Deposit:$10

Visit Broker

90% of retail CFD accounts lose money

90% of retail CFD accounts lose money

 

Technical Analysis

Gold prices moved higher closing at a fresh 6-year high on Tuesday.  Short-term resistance is seen near the August intra-day highs at $1,555. Support on the yellow metal is seen near the 10-day moving average at 1,526. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal. This is a sharp change in the fast stochastic, which likely means the change in momentum was unexpected. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The MACD histogram is printing in the red with a rising trajectory which points to consolidation.

Manufacturing Survey Points to Contraction

The ISM US manufacturing Purchasing Managers’ Index fell to 49.1 in August, the lowest reading in more than three years. Levels below 50 point to a contraction. Production and employment gauges also showed contraction in August for the first time after growth for almost three years. ISM’s new export orders slowed for the second month in a row to their lowest reading since April 2009. Separately, data from IHS Markit also released Monday showed the US manufacturing PMI slowed to 50.3 in August, its lowest level since September 2009.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US