The New Year started in a manner of new geopolitical tensions. This has supported the price of gold to head toward the $2.050 for one more time within a recent period. The highest weekly level reached was $2.062, with prevailing buying orders on Friday`s trading session. At the same time, since the end of the last year, the market is pricing forthcoming rate cuts by the Fed, which will most certainly impact the value of the USD and corellately, the price of gold.
The lowest level reached during the week was $2.014. The price of gold headed to test the support line at $2K, but with the Middle East new tensions, the price reverted back to the higher grounds. The RSI reached level of 50, but as the price of gold reverted back to the upside, so the RSI ended the week at the level of 55. Moving average of 50 days slowed down its divergence from the MA200 counterpart, but still holding the uptrend.
As long as geopolitical tensions hold, it could be expected that the price of gold will sustain its higher volatility in the coming period. For the moment, the short term resistance line at $2.050 will be tested. In case of a short reversal, the price could once again test the $2K support line.
Important news to watch during the week ahead are:
USD: Retail Sales for December, Building Permits Preliminary for December, Michigan Consumer Sentiment Preliminary for January
The lowest level reached during the week was $2.014. The price of gold headed to test the support line at $2K, but with the Middle East new tensions, the price reverted back to the higher grounds. The RSI reached level of 50, but as the price of gold reverted back to the upside, so the RSI ended the week at the level of 55. Moving average of 50 days slowed down its divergence from the MA200 counterpart, but still holding the uptrend.
As long as geopolitical tensions hold, it could be expected that the price of gold will sustain its higher volatility in the coming period. For the moment, the short term resistance line at $2.050 will be tested. In case of a short reversal, the price could once again test the $2K support line.
Important news to watch during the week ahead are:
USD: Retail Sales for December, Building Permits Preliminary for December, Michigan Consumer Sentiment Preliminary for January
