Gold climbs on weak US ISM non-manufacturing data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Gold prices clocked a fresh daily high of USD 1134.38/Oz after the ISM data showed a marked slowdown in the expansion of the service sector in January.

    Nears key fib resistance

    At USD 1134/Oz, the metal is just a couple of points short of USD 1136 (61.8% of Oct high-Dec low). Prices had dropped below 200-DMA at USD 1129.40 a few minutes back after the US stocks opened on a positive note.

    However, the bids tone strengthen again after the US ISM non-manufacturing number. More importantly, the employment index cooled down to 52.1 in January from December reading of 56.3. The gains in the metal could be extended further if the stocks extended the moderate drop seen now.

    Gold Technical Levels

    The immediate resistance is seen at 1136 (61.8% of Oct high-Dec low), which if taken out shall open doors for a rally to 1147.99 (Sep 1, 2015 high). On the other hand, a break below 1128.12 (Jan 27 high) could shift risk in favor of a drop to 5-DMA at 1123.44.
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