Gold Price Prediction – Prices Consolidate Near All-time Highs as the Dollar Rebound
Gold prices consolidated near all-time highs, as the dollar started to rebound after tumbling for 7-consecutive weeks. US yields moved higher following a report from the Institute of Supply management which showed that manufacturing expanded at the fasted rate since March of 2019. The rebound in yields buoyed the greenback capping upward momentum for the yellow metal.
Trade gold with FXTM
Regulated by:FCA, CySEC, FSC
82% of retail CFD accounts lose money
Gold prices consolidated just below all-time highs following last week’s 3.5% rise. Support is seen near the 10-day moving average near 1,927. Medium-term momentum has turned positive and continues to accelerate higher as the MACD (moving average convergence divergence) histogram is printing in the black with an upward sloping trajectory points to higher prices. Short-term momentum continues to flip flow back and forth between buy and sell signal. The fast-stochastic is printing a reading of 92 above the overbought trigger level of 80, which could foreshadow a correction. The RSI is printing a reading of 82, above the overbought trigger level of 70 which could foreshadow a correction.
ISM Manufacturing Rises More than Expected
U.S. manufacturing expanded in July at the fastest pace since March 2019. The Institute for Supply Management reported that its manufacturing index rose to 54.2 last month from 52.6. Expectations was for a reading of 53.6 median. The ISM’s measure of production increased in July to 62.1, the highest level since August 2018, and a gauge of orders climbed to 61.5, which was the strongest since September of that year.