Gold prices consolidated on Monday. The move in gold came as the dollar moved slightly higher and US yields declined despite a better than expected empire manufacturing report reported for the New York region on Monday.
Trade gold with FXTM
Gold prices edged higher and continued to trade just above support near the 10-day moving average at 1,715. Target resistance is now seen near the 50-day moving average at 1,108. Additional support is seen near the June lows at 1,670. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the MACD line.
New York Empire State Manufacturing Index Beat Expectations
Manufacturing activity in New York accelerated more than expected in March.The New York Fed’s Empire State index rose to 17.4 from 12.1 in February, beating expectations for a reading of 14.5 and hitting its highest level since last summer. The survey found that 34% of respondents reported that conditions had improved over the month, while 17% said they had worsened. The new orders index fell to 9.1 in March from 10.8 the month before, while the shipments index rose to 21.1 from 4.0. The inventories gauge came in at 8.5 compared to 6.5 in February.