Gold Price Prediction – Prices Edge Higher on Dollar Weakness
Gold prices rebounded slightly on Monday. The yellow metal was able to gain traction as the dollar eased. U.S. Yields moved lower following a mixed U.S. ISM manufacturing report. Prices paid soared while futures orders dipped. An unexpected decline in construction spending also weighed on new construction.
Gold prices edged higher and continue to experience a consolidative tone. Prices were able to recapture resistance at the 10-day moving average at which is now support at 1,790. Additional support is seen near the October lows at 1,750. Resistance seen near the October highs at 1,812. Short-term momentum turned positive as the fast stochastic generated a crossover buy signal. Medium-term momentum is consolidating as the MACD histogram is printing in positive territory with a sliding trajectory which points to consolidation.
Manufacturing Activity Dropped Less than Expected
U.S. manufacturing activity slowed in October to a 16-month low. The Institute for Supply Management reported on Monday its index of national factory activity slipped to a reading of 60.8 last month from 61.1 in September. Expectations were for the index to fall to 60.5. The ISM survey’s measure of supplier deliveries increased to a reading of 75.6 last month from 73.4 in September.