Gold prices moved higher on Wednesday, rising as riskier assets lost ground and a safe haven bid came back into the market. Tuesday’s softer than expected ISM manufacturing data which showed contraction has weighed on the dollar which has paved the way for higher gold prices. On Wednesday ADP released a stronger than expected private payroll report, which failed to help riskier assets.
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Gold prices rallied nearly 1.4% on Wednesday rising through trend line resistance near 1,487 which is now seen as short-term support and up to resistance which is seen near the 10-day moving average at 1,502. Short term momentum has turned positive fast stochastic generated a crossover buy signal in the middle of the neutral range. Medium-term momentum is beginning to consolidate. The MACD histogram is printing in the red with a flattening trajectory which points to consolidation. The short term trend in prices is lower, and the choppy topping pattern could point to lower prices for the yellow metal.
ADP Private Payrolls Rose More than Expected
Private sector jobs increased more than expected in September, according to ADP and Moody’s Analytics. According to the private payroll report, companies hired 135,000 more workers in the month, ahead of the 125,000 expected. That was a drop from the 157,000 in August, which was downwardly revised from 195,000. September’s gain was the slowest since June and brought the 2019 monthly average down to 145,000. Companies with fewer than 50 employees saw the slowest hiring gain for the month at just 30,000. Large firms, with at least 500 workers, created 67,000 new jobs, while medium-sized businesses added 39,000.
This article was originally posted on FX Empire
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