Gold prices moved higher bouncing off of the 20-day moving average at $1,116, despite the dollar gaining ground against most major currencies. Gold caught a bid as oil prices soared nearly 10% giving a boost to most commodities. Resistance on gold is seen near the recent highs at $1,167. Momentum on the yellow metal remains positive with the MACD (moving average convergence divergence) index printing in positive territory but the trajectory has flattened reflecting consolidation.
Gold initially lost ground early following a stronger than expected GDP report in the U.S. which boosted the dollar. Q2 GDP expanded at a 3.7% clip from 0.6% in Q1.Personal consumption grew at a 3.1% pace from 1.8% in Q1.Final sales expanded at a 3.5% pace following a -0.2% rate in Q1.
