Gold supported during US session – 24 May 2022
Gold is catching a bid as the US session develops. There have been several news releases today which have benefitted the precious metal.
1. The US flash services PMI came in at 53.5, lower than the forecast of 55.1. The pace of expansion was weighed down by hikes in selling prices and concerns over higher rates.
2. The Richmond Manufacturing Index came in at -9 against a forecast of +9.
3. New home sales printed at 591K against an expected 751K, as rising mortgage rates discouraged buyers.
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The precious metal's EMAs are positive with good angle and separation. Notably, the stochastic is above 80 (blue arrow), suggesting underlying solid momentum. If it maintains this position, the momentum will likely support prices.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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