Gold prices attempted to move higher on Monday but failed to gain traction. The dollar rose again putting capping the upside in the yellow metal. The U.S. 10-year yield tumbled on Monday dropping 7-basis points following the softer than expected U.S. ISM service report.
Gold prices moved higher but the yellow metal was unable to gain traction. Support is seen near the 10-day moving average near 1,779 and then an upward sloping trend line near $1,762. Resistance is seen near the 50-day moving average at 1,833. Short-term momentum has turned positive as the fast stochastic generated a crossover buy signal. Negative medium-term momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in negative territory with a rising trajectory which points to consolidation. The MACD line is poised to generate a crossover buy signal which would signal to accelerate positive momentum.