Gold prices stabilized as U.S. consumer credit surged in September, more than expected, which generates value in hard assets as borrowing increases. The yellow metal recaptured the 10-day moving average which is now seen as short term support near 1,274. Resistance is seen near the October highs at 1,306. Momentum is neutral as the MACD (moving average convergence divergence) histogram prints near the zero-index level with a flat trajectory which points to consolidation.
Consumer Credit Rose in September
U.S. consumer credit climbed $20.8 billion in September, stronger than expected, following the unrevised $13.1 billion increase in August. Non-revolving credit remained the driver, rising $14.4 billion after the prior $7.6 billion gain which was revised from $7.3 billion. Revolving credit was up $6.4 billion from $5.5 billion previously which was revised form $5.8 billion. For Q3, credit was up $51.8 billion following the $43.2 billion Q2 gain which was revised from $42.5 billion.
This article was originally posted on FX Empire