Gold prices edged higher and continue to trade in a sideways range. The U.S. dollar attempted to rise, but met resistance which helped buoy the yellow metal. U.S. Treasury yields declined ahead of a busy week in the U.S. for data. The U.S. will report CPI tomorrow ahead of industrial production in the middle of the week and retail sales on Thursday. The September Empire and Philly Fed surveys will also be noted alongside the University of Michigan’s consumer confidence.
Gold prices consolidated and edged higher but remain rangebound. Prices remained below resistance seen near the 50-day moving average, at 1,798. Additional resistance is seen near the 10-day moving average at 1,804. Target support is seen near the August lows at1,672. Short-term momentum has reversed and turned positive as the fast stochastic generated a crossover buy signal. The fast stochastic has rebounded out of the oversold territory, which reflects accelerating positive momentum.
Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This sell signal occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line (the 9-day moving average of the MACD line).
This article was originally posted on FX Empire