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US Data on Watch
Gold prices are sitting up against the 1973.51 level resistance currently following a strong rally over recent weeks. The market recovered sharply off the July lows, trading higher by around 4%. However, the recent uptick in USD has seen the move stalling for now. Looking ahead today, the main focus will be on the latest US PMI readings. On the back of the weakness seen today in both eurozone and UK data, traders are wary of similar weakness from the US data.
Today’s Forecasts
On the numbers front, both the factory and non-factory readings are set to decline today. Factory sector PMI is forecast at 46.1 from 46.3 prior while the non-factory sector reading is forecast at 54 from 54.4 prior. If seen at these levels or below, the impact should be broadly USD negative, allowing gold prices to rise near-term. On the other hand, should data beat forecasts today, this will likely fuel an increase in hawkish expectations ahead of the FOMC this week, weighing on gold prices consequently.
Technical Views
Gold
The market is at an important technical juncture. Following the recovery off the July lows, price is now testing the bear channel top as well as the 1973.51 resistance level. If this area holds, the focus will be on a fresh move lower with 1871.04 the main support to note. Should we break higher here, however, focus will shift back to the 2069.41 level above.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.