gold
Gold prices make an impressive intraday rebound from the daily lows at 1,453 after a big disappointment from US ISM Manufacturing. The United States ISM Manufacturing PMI came in at 48.1 below market expectations of 49.2 in November, the ISM Prices Paid came in at 46.7, also below forecasts of 47 in November. The United States Construction Spending (month over month) registered at -0.8%, below market expectations of 0.4% in October.
Gold prices turned positive after the U.S. macro data but stalled again for one more time at the 1,465 where it also rejected on Friday’s session. The optimism around trade talks during the Asian trading session pressured the safe-haven assets such as Yen and gold. President Trump earlier today tweeted that will restore the tariffs on steel and aluminium products that are shipped into the U.S. from Brazil and Argentina. President Trump also reiterated the call for lower rates attacking the Fed policy for one more time.
Last week the US Senate passed two legislations supporting the Hong Kong protesters but the news failed to attract gold buyers.
The Fed final policy meeting in December expected to add nothing new as analysts expect that the Fed will keep rates unchanged. The dollar index is under selling pressure today giving up 0.38% at 97.89 at six days lows.
The gold prices added over ten dollars after the disappointing ISM figures and reached the daily high at $1,465. The gold price has trapped between the $1,450 and $1,465 failing to capitalise on mixed signals out of the trade talks.
Today’s upside positive move will get pressure at $1,465.38 the daily high, while a break above that level will open the way for the next target at $1,476 the high from November 21st. The 100-day moving average at 1,484 will be the next strong supply zone.
On the other hand gold price first support stands at $1,453 today’s low while the low from November 12th at 1,445 will provide the next strong support. In case gold breaks below 1,445 more sellers will join the action and that might push the price down to $1,436 the August lows.
All in all the technical outlook is negative for gold and only a break above the 50 and 100-day moving average might cancel the recent bearish trend. Short gold positions can sit comfortably as long as the price trades below 1,465 resistance.