Gold Reverses Higher Despite Strong Dollar And Stable Stock Market
Gold prices swung between gains and losses on Tuesday. The precious metal extended last year’s rise to Asian trading hours before falling in the European trade. Price dropped as low as $1145.97 per ounce after upbeat U.S. data but the down move reversed higher quickly.
The Institute for Supply Management on Tuesday reported that American manufacturing expanded last month. The ISM’s manufacturing PMI rose to 54.7 from 53.2 a month earlier, marking the fourth straight advance and the fastest pace in two years.
However, the positive news which supported the dollar and U.S. shares higher failed to put pressure on the yellow metal. Gold jumped to as high as $1164.28 per ounce even though the U.S. dollar index hit the 15-year high 103.83. Gold seems bullish in short-term but the long-term outlook appears cloudy due to Fed’s aggressive rate-hike path.
Sell Stop at 1160.00, Take profit at 1150.00, Stop loss at 1165.00