Previous week was a relatively calm one on the gold market. By following small moves of USD, the Gold was traded within a range between levels of $1.938 and $1.969. Still, the week ahead is full of important news on inflation and FOMC rate decision, which might bring back some volatility on the gold market.
The resistance line at $1.970 continues to represent the challenge for Gold for the last three weeks. This level was tested on several occasions, while it could not be breached. RSI continues to move below level of 50, indicating that the market is still more oriented toward the oversold side, which might continue to put some pressure on gold in the coming weeks. Moving average of 50 days slowed down its divergence from MA200, so currently they are moving as two parallel lines.
Current charts are pointing that the struggle over breach of the $1.970 resistance line will continue. This level might be tested for one more time in the coming week, but without clear indication that it can be finally broken. On the opposite side, there is equal potential for a shortstop around level of $1.930.
Important news to watch during the week ahead are:
USD:
- Inflation rate for May,
- PPI for May,
- FOMC meeting and interest rate decision,
- Retail Sales for May,
- Michigan consumer Sentiment for June
The resistance line at $1.970 continues to represent the challenge for Gold for the last three weeks. This level was tested on several occasions, while it could not be breached. RSI continues to move below level of 50, indicating that the market is still more oriented toward the oversold side, which might continue to put some pressure on gold in the coming weeks. Moving average of 50 days slowed down its divergence from MA200, so currently they are moving as two parallel lines.
Current charts are pointing that the struggle over breach of the $1.970 resistance line will continue. This level might be tested for one more time in the coming week, but without clear indication that it can be finally broken. On the opposite side, there is equal potential for a shortstop around level of $1.930.
Important news to watch during the week ahead are:
USD:
- Inflation rate for May,
- PPI for May,
- FOMC meeting and interest rate decision,
- Retail Sales for May,
- Michigan consumer Sentiment for June
