Gold prices were nearly unchanged on Friday, edging lower as the dollar gained traction. The EUR/USD surged and the dollar index rallied, as yields moved slightly higher. The decline in the European currency came following a softer than expected composite flash PMI. For the week gold prices were down approximately 0.3%. All the safe-haven bid that was incorporated into gold prices appears to have evaporated as volatility eased and investors moved into riskier assets.
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Gold prices eased consolidated for most of the week and continued its sideways price action on Friday. Prices edged through support near the 10-day moving average which is now seen as short term resistance at 1,465. Additional resistance is seen near the 100-day moving average at 1,482. The 10-day moving average crossed below the 100-day moving average which would show that a short-term downtrend is in place. Short term momentum has reversed and turned negative as the fast stochastic generated a crossover sell signal. Medium-term momentum is neutral as the MACD (moving average convergence divergence) histogram is printing near the zero-index level with a flat trajectory that reflects consolidation.
Flash PMIs are Mixed
Eurozone PMI data for November was mixed. The Flash Services PMI fell to 51.5 while manufacturing rose to 46.6. This weighed on the composite PMI down to 50.3 versus expectations that it would come in at 50.9. Germany and France saw gains in manufacturing and declines in services. Germany’s November manufacturing PMI came in at 43.8 which was great than the 42.8 expected. France’s manufacturing PMI was 51.6 versus 50.9 expected.
This article was originally posted on FX Empire
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