After closing at $1,809.6 Friday, CME Gold opened today at $1,810.5, to be greeted by bearish sentiment that overshadowing today's price action. Irrespective of the bearish mood, CME Gold retains a distinct $1,781.4 to $1,823 daily range.
CME Gold is currently trading at $1,782.3 following the release of ISM Non-Manufacturing PMI (Nov) data from the United States.
Amid the market gloom, United States ISM Non-Manufacturing PMI (Nov) released today at 15:00 UTC with a figure of 56.5, while the previous figure was 54.4. Data for United States Factory Orders published today at 15:00 UTC came out at 1%, beating projections of 0.7% and showing improvement over the preceding figure of 0.3%. Fresh ISM Non-Manufacturing Employment (Nov) data from United States came out at 51.5.
Trend-following investors would be interested to note that Gold made an initial break below its 200 day Simple Moving Average at $1,787, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $1,773.8 currently serving as support. If price action breaks below, the next Fib hurdle is $1,717.84. Japanese candlestick formations show when "Bullish Engulfing” is detected at the bottom of a bearish trend, it is typically indicative of a trend reversal. Technical analysis shows that although CME Gold is down today and was as low as $1,781.4, it seems to be recovering slightly and climbing away from the $1,794.43 support line and is now $12.13 above it.
Overall, the technical outlook suggests Gold is likely to remain muted for the immediate future, with no clear-cut direction.
In the meantime, negative performances are also seen in other Metals as Silver is down 87.5 cents from the beginning of the session and now trades around $22.38. Platinum withdraws 1.83% to trade around $1,007.8. Copper closed at $3.79 (down 1.55%).
Furthermore, United States EIA Short-Term Energy Outlook is expected tomorrow at 17:00 UTC.
The commodity has been trending positively for about a month. CME Gold is now trading 11.48% above the significant low ($1,623.3) it slumped to 2 months ago.