Gold Price Prediction – Prices Continue to Rise as the Dollar EasesGold continues to rise hit fresh 6-year highs
Gold prices moved higher on Wednesday as the dollar eased, and US rates moved sideways. The Eurozone reported final services and composite PMI data for August which increased slightly compared to the preliminary readings. Geopolitical events continue to buoy gold prices, as Brexit concerns continue to circle the UK parliament.
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Gold prices moved higher, rising for the 3rd consecutive day and closing at a fresh 6-year high on Wednesday. Resistance is seen near the January 2013 highs at 1,667. Support on the yellow metal is seen near the 10-day moving average at 1,531. 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 is about to turn positive as the MACD (moving average convergence divergence) index is poised to generate a crossover buy signal. The MACD histogram is printing near the zero index level with an upward sloping trajectory which points to higher prices.
EU PMIs Rise
Eurozone reported final services and composite PMI readings for August, both of which came in slightly higher than expected. Both also rose more than the preliminary readings to 53.5 and 51.9, respectively. Spain and Germany’s composite improved to 52.6 and 51.7, as did France to 52.9. Italy composite fell to 50.3 from 51.0 in July. Eurozone also reported July retail sales, which fell -0.6% month over month. The UK reported weak August services and composite PMIs. They came in at 50.6 and 50.2 vs. expectations of 51.0 and 50.5, respectively. Earlier this week, construction PMI came in at 45.0 vs. 46.5 expected and manufacturing PMI came in at 47.4 vs. 48.4 expected.