At the time of writing, Gold prices were up by 0.24% on the day and trading at $1,482. The move higher makes it the second day of gold strength following the rebound from the two-month low reached yesterday.
Yesterday, the US ISM Manufacturing index declined to its worst level in a decade, and that put pressure on USD, causing gold prices to surge.
However, today the bullish momentum looks to be capped by the 50-day moving average at $1,495, and I consider the short-term outlook as neutral.
On the upside, the first resistance level is today’s high of $1,484, while a break above the high will open the way for the $1,495, the 50-day moving average.
Immediate support for Gold prices can be found at the daily low of $1,474 and break below $1,474 will open the way for a test of $1,458, yesterday’s low.
In the multi-day outlook, bears control gold prices as long as they trade below $1,500. However, a break above will question the recent correction and might attract some bids that can re-establish a positive trend.Don’t miss a beat! Follow us on Telegram and Twitter.