The USD gained during the previous week, following released PCE data which were higher than expected. The Core Personal Consumption Expenditure rose 0.4% on a monthly basis, supporting the market expectations that the Fed will continue to hike rates at their next meeting in June. The expected rate hike is estimated at 25 bps. This will continue to support USD and Gold will follow its negative correlation.
XAUUSD started the previous week by testing the resistance line at $1.970. Following the rise in the USD, the price of gold reverted a bit to the downside and to the lowest weekly level at $1.937. The RSI reached level of 37, still leaving some space for the price to reach lower grounds, until a clear oversold side of the market is reached. Moving average of 50 days is still modestly diverging from its MA200 counterpart, but continues to support the “Golden cross” which occurred in January this year.
Short term resistance line at $1.970 continues to be a target for gold. As per current charts, there is some probability that this level might be tested for one more time during the week ahead. However, there is currently low probability that this level might be breached. On the opposite side, the next support line stands at $1.880, but at this moment, there is quite a low probability that his level might be tested soon.
Important news to watch during the week ahead are for USD: Debt-ceiling potential deal, CB Consumer Confidence for May, ISM Manufacturing PMI, Non-farm Payrolls, Unemployment rate.
XAUUSD started the previous week by testing the resistance line at $1.970. Following the rise in the USD, the price of gold reverted a bit to the downside and to the lowest weekly level at $1.937. The RSI reached level of 37, still leaving some space for the price to reach lower grounds, until a clear oversold side of the market is reached. Moving average of 50 days is still modestly diverging from its MA200 counterpart, but continues to support the “Golden cross” which occurred in January this year.
Short term resistance line at $1.970 continues to be a target for gold. As per current charts, there is some probability that this level might be tested for one more time during the week ahead. However, there is currently low probability that this level might be breached. On the opposite side, the next support line stands at $1.880, but at this moment, there is quite a low probability that his level might be tested soon.
Important news to watch during the week ahead are for USD: Debt-ceiling potential deal, CB Consumer Confidence for May, ISM Manufacturing PMI, Non-farm Payrolls, Unemployment rate.
