The US economy is showing high resilience to monetary measures imposed by the FED. Latest published fundamental data shows that confidence is slowly returning back both to businesses and consumers. Inflation is also on a down-side, as the released PCE price index showed further drop in May to the level of 3.8%. All this might influence the USD to strengthen in the coming period, while it might negatively impact the price of gold, considering its negative correlation to USD.
During the previous week the price of gold was on a road to the down-side. Lowest level reached during the week was $1.893, after which, xauusd reverted a bit to the upside, finishing the week at level of $1.919. RSI reached level of 35, but the clear oversold side has not been reached. Moving average of 50 days continues with its convergence toward the MA200 counterpart, but there is still a higher distance between lines in order for cross to occur.
Current charts are showing that the price of gold might revert a bit to the $1.920 resistance line, but, at this moment there is no indication that this line might be breached to the upside. In case of a short-term reversal, there is also potential for the next support line, at $1.850 to be tested in the coming period.
Important news to watch during the week ahead are:
USD: ISM Manufacturing PMI, FOMC meeting Minutes, ISM Services PMI, Non Farm payrolls for June, Unemployment Rate
During the previous week the price of gold was on a road to the down-side. Lowest level reached during the week was $1.893, after which, xauusd reverted a bit to the upside, finishing the week at level of $1.919. RSI reached level of 35, but the clear oversold side has not been reached. Moving average of 50 days continues with its convergence toward the MA200 counterpart, but there is still a higher distance between lines in order for cross to occur.
Current charts are showing that the price of gold might revert a bit to the $1.920 resistance line, but, at this moment there is no indication that this line might be breached to the upside. In case of a short-term reversal, there is also potential for the next support line, at $1.850 to be tested in the coming period.
Important news to watch during the week ahead are:
USD: ISM Manufacturing PMI, FOMC meeting Minutes, ISM Services PMI, Non Farm payrolls for June, Unemployment Rate
