Services slipped more than expected
Gold prices attempted to move higher on Monday but failed to gain traction. The dollar rose again putting capping the upside in the yellow metal. The U.S. 10-year yield tumbled on Monday dropping 7-basis points following the softer than expected U.S. ISM service report.
Gold prices moved higher but the yellow metal was unable to gain traction. Support is seen near the 10-day moving average near 1,779 and then an upward sloping trend line near $1,762. Resistance is seen near the 50-day moving average at 1,833. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Negative medium-term momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory which points to consolidation. The MACD line is poised to generate a crossover buy signal which would signal to accelerate positive momentum.
US ISM Services PMI declined in June to 60.1, down from 64.0. While still robust, the decline in services missed the expectation of 63.5. Business activity dropped -5.8 to 60.4. New orders, which reflects a forward-looking business activity, dropped -1.8 to 62.1. Employment dropped -6.0 to 49.3, back in contraction. Supplier deliveries dropped -1.9 to 68.5.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.