The USD was gaining in strength during the week, while Gold was struggling to get back into negative correlation track, which was lost two weeks ago. FOMC meeting minutes revealed possible further interest rate increases in order to get inflation back on 2% track, while during the previous week Fed Chair Powell confirmed this possibility in his annual speech at the Jackson Hole conference in Wyoming.
The price of the xausud started the week around $1.886 and reached its highest weekly level at $1.920, testing the short term resistance line. After reaching the oversold side, RSI modestly moved toward the level of 46, however, the market is still not ready to clearly break the 50 line and head toward the overbought side. Moving average of 50 days continues to move closer to its MA200 counterpart, increasing the probability for so-called “dead cross” in the coming weeks.
Markets are still digesting Powell's speech, in which sense, some further volatility might be possible in the week ahead. The price of gold is now targeting the next resistance line at $1.950, however, it might come after the gold finds its way to break current short term resistance at $1.920. In this sense, there is a probability for another move toward $1.9K, before final reversal occurs.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for August, GDP Growth Rate 2nd Estimate, PCE Price Index for July, Non-Farm Payrolls for August, ISM Manufacturing PMI for August
The price of the xausud started the week around $1.886 and reached its highest weekly level at $1.920, testing the short term resistance line. After reaching the oversold side, RSI modestly moved toward the level of 46, however, the market is still not ready to clearly break the 50 line and head toward the overbought side. Moving average of 50 days continues to move closer to its MA200 counterpart, increasing the probability for so-called “dead cross” in the coming weeks.
Markets are still digesting Powell's speech, in which sense, some further volatility might be possible in the week ahead. The price of gold is now targeting the next resistance line at $1.950, however, it might come after the gold finds its way to break current short term resistance at $1.920. In this sense, there is a probability for another move toward $1.9K, before final reversal occurs.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for August, GDP Growth Rate 2nd Estimate, PCE Price Index for July, Non-Farm Payrolls for August, ISM Manufacturing PMI for August
