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Gold prices rebounded Friday but remain in the range. Compensatory data showed that manufacturing output in the United States declined while the number of available jobs increased. Yields fell while the dollar fell, paving the way for higher gold prices. Gold prices ended the week up 0.3%. Gold prices made most of the gains made Thursday earlier this week. With Brexit likely to be postponed until the end of the month, geopolitical issues have been ruled out. The dollar is also struggling to gain ground as the Fed is now on hold with other central banks. The Bank of Japan ended its two-day meeting on Friday. No policy changes have been announced. Some were of the opinion that the BoJ should be more accommodating.
Technical analysis
Gold prices rebounded from near 10-day moving average support at 1,294. Resistance is seen near 50-day moving average at 1,303. Prices are a sandwich between the 2 moving averages. Prices also appear to form a lining pattern. This could be the second shoulder of a reversal pattern of the head and shoulders. The momentum has become neutral. The Moving Average Convergence Convergence (MACD) histogram prints in red with an upward trajectory that indicates consolidation.
Manufacturing output declining in February
US industrial production declined for the second month after rising in February. The Federal Reserve reported that manufacturing output fell 0.4% last month as a result of lower motor vehicle production. January data were revised upwards to indicate that factory production fell by 0.5% instead of 0.9%, as previously reported. Manufacturing output was expected to increase 0.3% in February. Use in factories rose 1% in February compared with the previous year. Production of cars and parts decreased 0.1%, after a 7.6% decline in January. Non-automotive production decreased 0.4% in February.
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