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Gold Prices Test 20-day MA, US Macro Data Failed to Impress

Gold Price
Gold Prices

Gold prices continue lower today after yesterday’s tumble from three-week highs after failing to break above the 1,350 resistance that I mention in gold prices technical analysis report. A mixed bag of data from US failed to impress gold investors as Annual core PCE Price Index rose to 1.8% in August as widely expected by markets. The Durable Goods Orders came in at 0.2% beating expectations of -1% in August.

Investors for third day in a row continue to dumb safe-heaven assets after US President Donald Trump said that a trade deal with China might come sooner than expected. The long term bullish momentum for the precious metal is intact, but the short term outlook now is neutral as XAGUSD tests the 20-day moving average at 1,492. On the upside, resistance would be met at 1,507 today’s high while a break above will open the way for the 1,535 Wednesday’s high. Immediate support for Gold stands at 1,490 daily, a break below will open the way for a visit down to 1,486 recent low. Bears are controlling gold price as long as the price holds below 1,500. A break above will question the recent correction and might attract some bids that can re-establish the positive trend.