Gold Analysis - XAU/USD: Could take-out 100-DMA resistance on dismal US trade data?

The XAU/USD pair (gold prices in terms of the US dollar) rallied to fresh two-week highs at 1142.06 levels on Monday, extending its effort to conquer the downward sloping 100-DMA located at 1144.50 levels. The prices found the catalyst in the worse-than expected US ISM non-manufacturing PMI report, which dragged the greenback lower. The US services sector data reported by ISM showed a drop to 56.9 versus 58.0 estimates. The data added to the recent streak of weak US fundamentals, thus raising concerns over US economic outlook and further dropping expectations of the Fed rate hike this year. The prices quickly retraced from highs and ended the day slightly in the red at 1135.80, below the key Fib 61.80% (last week’s fall) level located at 1136.52. As for today’s trade
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