Gold Price Prediction – Prices Consolidate Following Robust PMI ResultsPrices edge higher for the week
Gold prices moved sideways edging slightly higher closing up approximately 0.25% for the week. This came as the dollar moved lower and Treasury yields took a break from their recent climb. A stronger than expected US Markit PMI index failed to further lift treasury yields. Germany’s manufacturing PMI rose to 58.0 from 56.4, which was better than expected.
Trade gold with FXTM
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Gold prices consolidated remaining below resistance near the 10-day moving average at 1,906. Support is seen near the October lows at 1,872. Short-term momentum has whipsawed and turned positive after recently turning negative as the fast stochastic generated a crossover buy signal on the upper end of the neutral range. Medium-term momentum remains neutral to positive as the MACD histogram prints in the black with an upward sloping trajectory that points to a slow trend higher.
US Composite PMI Rises More than expected
The US Flash Composite Output Index rose to 55.5 in October from 54.3 in September, which was a 20-month high. Expectations were for the compositive index to remain at 54.3. The business services index also increased rising to 56 from 54.6 in September which was also a 20-month high. Expectations were for an unchanged reading. The Flash Manufacturing index was slightly higher at 53.3 up from 53.2 in September which was a 21-month high. Expectations were for an unchanged reading at 53.2.