The dollar continues to rebound
Gold prices moved lower on Friday and finished the week in the red down 0.6%. The decline in the yellow metal came as the dollar rebounded. U.S. Yields moved higher despite a smaller than expected gain in the Markit PMI services index. It appears that vendors are concerned about the recent spread of the delta variant of the COVID-19 virus.
Gold prices moved lower on Friday but remain rangebound. Support is seen near the 20-day moving average at 1,799. Resistance is seen near the 50-day moving average at 1,835. The consolidation is tightening and building energy. Short-term momentum is negative as the fast stochastic generated a crossover sell signal. Medium-term positive momentum is decelerating. The MACD histogram is printing in positive territory with a declining trajectory which points to consolidation. Despite the sideways price action, gold continues to trade in a short-term uptrend.
The service sector in the U.S. likely pulled back in July according to Markit Intelligence company Markit. The Markit, July U.S. services, flash PMI 59.8 versus 64.8 expected. The final prior reading for May was 64.6. In the service sector some firms noted customer hesitancy amid significant hikes in selling prices. Firms noted the lowest degree of optimism since February. Additionally, new export orders eased.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.