Gold prices reversed course on Friday, slumping back below support near the 10-day moving average at 1,277 which is now seen as short-term resistance. Target resistance is seen near the October highs at 1,306. Support is seen near an upward sloping trend line near 1,266. Momentum is positive but decelerating as the MACD (moving average convergence divergence) histogram prints in the black with a declining trajectory which points to consolidation.
November Sentiment Contracts
U.S. November consumer sentiment fell 2.9 points to 97.8 in the preliminary print from the University of Michigan survey, giving back about half of the surprise 5.6 point jump to 100.7 in October (that was a 13-year high). The current conditions index slid 2.9 ticks to 113.6 from 116.5 previously. The expectations index also dropped 2.9 points to 87.6 from 90.5. The 12-month inflation gauge sped up to 2.6% from 2.4%. The 5-year index was steady at 2.5%. Though weaker than expected, the readings are coming off of very high levels, and the headline index is still the third best of the year.
This article was originally posted on FX Empire
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