Yahoo Finanza Gold Price Prediction – Prices Consolidate Following Weak ISM Manufacturing Report
Gold prices moved sideways, forming a doji day which is a sign of indecision. This movement in the yellow metal was in tandem with an unchanged reading on the greenback. U.S. Yields moved lower following the softer than expected ISM manufacturing report. The decline in the ISM figures was counter to the better than expected EU PMI manufacturing report released earlier in the day. As the delta variant threat continues to worsen, any weakness will continue to weigh on U.S. yields and help buoy gold prices.
Technical analysis
Gold prices moved sideways on Monday, consolidating at the upper end of last week’s range. Support is seen near the 10-day moving average at 1,808. Resistance is seen near the July highs at 1,834. Momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a downward sloping trajectory which points to consolidation.
U.S. ISM Manufacturing Slips
According to the Institute of Supply Management (ISM), manufacturing activity declined in July and was the lowest print since January. The 59.5 ISM manufacturing survey in July was down from the 60.6 reading in June. Expectations were for the manufacturing index to come in at 60.9. The survey moved in the opposite direction of the Eurozone flash PMI survey, at 62.8 from 62.6 in June.
This article was originally posted on FX Empire
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