US dollar weakness sends gold $23 higher on Tuesday
When the US dollar is the big loser, gold is often a winner.
Precious metals are surging today as hopes for a Fed hike this month fade. The gains have come almost entirely since the ISM non-manufacturing index disappointed and helped to scrap the chance of a Sept 21 rate rise.
It's the fourth day of gains for gold after it hit a two-month low in the middle of last week. The gains have followed a similar pattern -- all of them have come after poor data. It started with the weak ISM manufacturing index, continued through the jobs report and now with today's services sector data.
Looking ahead, there is the chance of a further rise. There is still plenty of money betting on a Fed hike and technically, break of the downtrend since early July and the July/Aug highs would lend a lift.
However in the short term, gold bulls might want to take some profits ahead of those levels and wait for a dip back down to the 55-day moving average at $1333 before reloading.
