Gold prices rebounded on Friday, after pushing through support near an upward sloping trend line at 1,281. A stronger than expected EU PMI help buoy prices. Additional resistance is seen near the 10-day moving average at 1,285. Target support on the yellow metal is seen near the November lows at 1,261. Momentum has turned negative as the MACD (moving average convergence divergence) index generated a cross sell signal. The MACD histogram is printing in the red with a downward sloping trajectory which points to lower prices.
EU PMI Was Revised Higher
The Eurozone manufacturing PMI was revised up to 60.1 in the final reading from 60.0 reported initially and versus 58.5 in the previous month. This is the best performing in 17 years and Markit reported that growth of output and new orders climbed to multi-year highs and supported survey-record job creation. PMI readings in Germany, the Netherlands, Austria and Ireland are at or near to record highs and the upswing was broad based across the Eurozone, with all countries surveyed reporting expansion for the sixth straight month.
This article was originally posted on FX Empire
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