Gold prices bounced for a second consecutive trading session. The rally in the dollar stalled helping provide tailwinds for gold prices. U.S. Yields moved lower as the safety of U.S. Treasury bonds continued to attract traders. U.S. Housing Starts increased more than expected in August, as materials such as lumber declined.

Technical analysis

Gold prices rebounded but continue to form a bear flag pattern. This pattern is a continuation event that pauses before it refreshes lower. Prices remained below resistance seen near the 10-day moving average, at 1,780. Target support is seen near the August lows at 1,677. The 10-day moving average has crossed below the 50-day moving average, which means that a short-term downtrend is now in place. Short-term momentum has reversed and turned positive as the fast stochastic generated a crossover buy signal. Prices have moved from oversold territory into neutral territory which is a sign of…

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