Gold Forecast: Stocks fell on the news, helping the dollar to appreciate even against the safe-haven gold. However, an upbeat US ISM Services PMI brought back mild optimism.
In September, the index printed at 56.7, better than the 56 expected. Wall Street trimmed a good part of its intraday losses, although the three major indexes remain in the red. The better tone of equities limited the dollar demand and helped Gold (Yellow Metal) to recover some $10.00.
Gold (Yellow Metal) Price Short Term Technical Report
The daily chart for the bright metal shows that Gold (Yellow Metal) is trading just above the 61.8% retracement of its $1,768 slump at $1,700, also above a flat 20 SMA. The Momentum indicator maintains its bullish slope well into positive territory, but the RSI indicator has lost its upward strength and turned marginally lower above its midline. At the same time, the longer moving averages hold downward slopes far above the current level, all of which keep the risk skewed to the upside.
In the near term, and according to the 4-hour chart, bulls are in control of the pair. The intraday slide halted above a mildly bearish 200 SMA, but the 20 SMA keeps advancing and is about to cross above the longer ones. Meanwhile, technical indicators aim higher, well above their midlines, and after correcting extreme overbought conditions.
