Yields moved lower following soft Factory Orders
Gold prices moved lower and are consolidated remaining rangebound. The dollar moved higher and weighed on gold prices. Yields declined slightly following a drop in February factory orders.
Factory orders fell in February, but manufacturing remains supported by low inventories at businesses. According to the U.S. Commerce Department, factory orders fell 0.5% in February. As previously reported, data for January was slightly revised to show factory orders rising 1.5% instead of 1.4%. Expectations were for factory orders to decline by 0.5%.
Gold moved lower but remained rangebound. Prices remain below short-term resistance near the 10-day moving average at 1,935. Support is seen near the 50-day moving average at 1,899. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal.
The medium-term momentum has turned negative. The MACD histogram prints in negative territory with a decelerating trajectory pointing to lower gold prices.
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.