Strong US jobs data and relatively good economic conditions despite strong monetary tightening made an impact on the price of Gold to stabilize around the level of $2K. The correlation with the USD has been returned during the previous week, however, the price of Gold remained at relatively higher grounds. Gold started the previous week around level of $2.070 while the metal is ending the week at level of $2.004 and with prevailing selling orders.
After reaching a clear overbought side two weeks ago, RSI slowly reverted toward the level of 50. It is still not clear on charts whether investors are ready to move toward the oversold side, in which sense, some oscillations around Gold price might be in store for the week ahead. Two weeks ago MA50 crossed its MA200 counterpart, forming the so-called golden cross, while during the previous week MA50 continued to diverge further, confirming the cross.
The short reversal might continue during the course of the week ahead, but first the price of Gold needs to clearly test the $2K support line. Some short oscillations might be possible around this level. In case that the support line is clearly crossed, then the next target will be the support line at $1.970. It should be considered that the FOMC meeting is scheduled for the week ahead, where some market volatility might be triggered.
Important news to watch during the week ahead are:
USD: Inflation Rate for November, Producer Price Index for November, FOMC meeting -rate decision and economic projections, after the meeting Fed Chair Powell Conference, Retail Sales for November
After reaching a clear overbought side two weeks ago, RSI slowly reverted toward the level of 50. It is still not clear on charts whether investors are ready to move toward the oversold side, in which sense, some oscillations around Gold price might be in store for the week ahead. Two weeks ago MA50 crossed its MA200 counterpart, forming the so-called golden cross, while during the previous week MA50 continued to diverge further, confirming the cross.
The short reversal might continue during the course of the week ahead, but first the price of Gold needs to clearly test the $2K support line. Some short oscillations might be possible around this level. In case that the support line is clearly crossed, then the next target will be the support line at $1.970. It should be considered that the FOMC meeting is scheduled for the week ahead, where some market volatility might be triggered.
Important news to watch during the week ahead are:
USD: Inflation Rate for November, Producer Price Index for November, FOMC meeting -rate decision and economic projections, after the meeting Fed Chair Powell Conference, Retail Sales for November
