Gold Price Prediction – Prices Rise on Weak Chicago PMI report
Gold prices rallied nearly 1% on Friday, following worse than expected personal spending and weak manufacturing figures. Concerns over the US and China’s locking heads are also helping to buoy the yellow metal. The dollar continued to move lower as yields edge slightly lower, which helped buoy the price of gold.
Technical Analysis
Trade gold with FXTM
Technical analysis
Gold prices moved higher recapturing resistance which is now support near the 5-day moving average at $1,720, Target support is still an upward sloping trend line that comes in near $1,698. Below that level is support near the 50-day moving average at $1,684. Short-term momentum has turned positive as the fast stochastic recently generated a crossover buy signal. Medium-term momentum is negative but turning neutral as the MACD (moving average convergence divergence) histogram is printing in the red with a rising trajectory that points to consolidation.
The Institute of Supply Management reported that the May Chicago PMI came in at 32.3 versus expectations it would rise to 40.0. This compares to 35.4 in April. That’s the weakest since 1982. Among the main five indicators, order backlogs and supplier deliveries saw the largest declines.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Gold Price Prediction – Prices Rise on Weak Chicago PMI report
Crude Oil Weekly Price Forecast – Crude Oil Continue to Reach Towards Gap
Silver Weekly Price Forecast – Silver Markets Reach Towards Highs
E-mini NASDAQ-100 Index (NQ) Futures Technical Analysis – Tech Up as Investors Buy Semiconductors