Latest data on the US manufacturing sector showed improvement beyond expectations. Also, A. US dollar continues to see great strength says. Gold prices, of these data next process your session of lowest levels declined . However, the decline does not seem to stop here.
US data came above expectations, the yellow metal dived!
Institute for Supply Management (ISM) manufacturing index was announced as 47.6% in August. TO month of yule If the data is It was 49%. Meanwhile, P market consensus expected a value of 47.9% . Data above 50% in such diffusion indices indicate economic growth. Therefore, the opposite is also true. The further below or above 50% an indicator is, the larger or smaller the rate of change. cryptokoin.com As you follow from , following the announcement, gold prices fell to new low levels during the session. Spot gold was last traded down 1.00% at $1,830.25 during the summer.
The employment index rose to the expansion zone with 51.2% in September, following the 48.5% value in August. The new orders index continued to remain in the contraction zone. However, it increased from 46.8% in August to 49.2%. The price index also made a surprise, falling by 4.6 points to 43.8 in September from 48.4% in August. Timothy Fiore, Chairman of the ISM Manufacturing Business Survey Committee, comments:
The US manufacturing sector continued its contraction trend. But at a slower rate, it recorded its best performance since November 2022, when the PMI was also recorded at 49 percent. Companies are still managing their output appropriately as the weakness in orders continues. However, the improvement in PMI in September compared to the previous month is clearly positive.
Technical analysis of gold prices: This bottom level is now a matter of time!
technical analyst Christopher Lewis, It depicts the technical appearance of gold. We continue to see many problems with the US dollar and high interest rates. That’s why gold prices fell once again during the trading session on Monday. This is of course very toxic for the gold market as we continue to see every short term rally being sold off. Now that we are well below the $1,900 level, I believe it is only a matter of time before we break down to the $1,800 level, which is a significant support level and of course a big, round, psychologically important number. In general, every time we rise, the market will jump. It also looks like a market where there will be many sellers that will drive the price down.
The size of the candlestick is somewhat impressive and signals that the downward momentum will continue. The Friday session was initially a rally for gold prices. However, it later reversed itself and disintegrated. Monday session was generally a continuation of downward pressure. The $1,900 level above is an important resistance barrier. It is not possible for the market to rise further until it rises above this level. I agree it’s oversold at this point. But eventually I think we will go much lower. Nothing has changed in terms of the economic outlook.
If we break below the $1,800 level, there will be a breach of an important support zone. In this case, it is possible for gold prices to drop much lower. However, I don’t think it will be easy. However, it’s something to keep an eye on in the future. All else being equal, this is a market that continues to have plenty of selling pressure going forward. So every time it rises, I look at it as an opportunity to fade the next rally that shows signs of hesitation.
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