Original title: Weak US ISM fueled the big market, four photos to see gold and silver technical outlook!If it breaks this moving average, the price of gold is expected to rise another $70
News 24K99 As weak US economic data hit the dollar hard, gold and silver spotted on Monday (October 3). The latest article from the well-known agency ActionForex.com analyzes technical forecasts of gold and silver.
ActionForex.com pointed out that gold and silver rose sharply as the US dollar weakened as the Institute for Supply Management (ISM) manufacturing PMI came in lower than expected. The disappointing data prompted some to think that Fed officials may be starting to become more cautious about the pace of tightening.
On Monday, the US dollar index closed up 0.47% at 111.65. Spot gold closed at $1,699.55 an ounce, up $38.76 or 2.33%, the biggest one-day gain since March 8. Spot silver closed up 8.78% at $20.695 an ounce.
The ISM said on Monday that the US ISM manufacturing PMI fell to its lowest level in more than two years in September, almost to a complete stop, and that manufacturing orders contracted for the third time in four months. Data showed that the US ISM manufacturing PMI fell to 50.9 in September, well below the 52.5 expected and below the 52.8 in August.
gold,ActionForex.com reported that the price of gold has broken through the resistance level of $1687.82/oz, which means the short-term bottom is at $1614.60/oz. As long as the minor support level of $1659.51/oz can be held, gold price will move higher and rise to the 55-day exponential moving average (EMA), which is currently $1718.30/oz, close to the medium term. descending channel resistance.
(4 hour spot gold chart source: ActionForex.com)
From the daily chart, despite the bullish convergence of the MACD indicator, it is still too early to predict that the gold price trend has turned bullish.However, a sustained break above the 55-day EMA should at least lead to a stronger upside towards the 38.2% Fibonacci level of the $2,070.06-$1,614.60 decline at $1,788.58 per ounce.
(spot gold daily chart source: ActionForex.com)
for money,ActionForex.com pointed out that silver’s gains outpaced gold, with the former breaking above the 55-day EMA. As long as the minor support level of $19.20 per ounce can be maintained, silver prices are expected to rebound further. If the $20.86/oz resistance is broken, silver will target the 38.2% Fibonacci with the drop from $30.07/oz to $17.54/oz at $22.32/oz. The price reaction will reveal an opportunity for the trend to turn bullish.
(4 hour spot currency chart source: ActionForex.com)
(Source of spot currency daily chart: ActionForex.com)
At 08:06 Hong Kong time, spot gold was quoted at US$1,700.89/oz, and spot silver was at US$20.76/oz.
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