Gold Price Prediction – Price Edge Despite Robust ISM Data

Gold prices continued to rise on Tuesday as the dollar strengthened against expectations. The US dollar kept its trend low as US yields were southward. This comes despite being stronger than expected manufacturing data that was released in the US on Tuesday.

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technical analysis

Gold prices rose on Tuesday but hit a session high. Support appears near the 10-day moving average at 1,946. The target support is seen at 1,893 near the 50-day moving average. Resistance is seen near high levels at 2,075. The medium-term speed is decreasing as the MACD histogram is printing in red with an increasing trajectory that indicates consolidation. The short-term momentum has turned positive as a faster stochastic has generated a crossover buy signal. The Relative Strength Index has also been reflected higher, reducing negative momentum.

Manufacturing higher than expected

The manufacturing sector in the US is strong, and the Institute of Supply Management’s Tuesday report showed stronger than expected numbers. The August ISM manufacturing index fell to 56.0 in August, compared to expectations, it would increase to 54.5 from 54.2 in July. The new orders increased from 61.5 in July to 67.6 in August and production increased to 63.3 from 62.3 in July. The backlog also increased to 54.6 from 51.8 in July, while paid prices increased to 59.5 from 53.2. August expansion in manufacturing was 4thTh Expansion in one consecutive month.