The Minutes from the latest FOMC meeting has been published during the previous week, not exposing much of the data which the market has not already priced. The only issue was related to the statements of several Fed officials that the vote for a first rate cut might be postponed until they see clearly that the inflation is going toward the 2% target. This certainly implies that the first rate cut might come later than previously anticipated by the market. The US Dollar weakened after the release of the Minutes, while gold had its chance to adjust to negative correlation, and move toward the highest weekly level at $2.040. The price of gold is ending the week modestly below this level.
The RSI clearly headed toward the overbought range during the week, by reaching the level of 56 on Friday. Moving average of 50 days continues to move in parallel with its MA200 counterpart, without an indication that the potential cross might come anytime soon.
The week ahead could bring back some volatility on the market, as PCE data are scheduled to be released. As markets are now closely focused on inflation data, there is high potential for USD to react on the data in case that they are below or above current market expectations. In this sense, there is an equal probability for the price of gold to test $2K support, but also for testing of $2.050 resistance line.
Important news to watch during the week ahead are:
USD: Durable Goods Orders for January, CB Consumer Confidence for February, GDP Growth rate second estimate for Q4, PCE Price Index for January, ISM Manufacturing PMI for February, Michigan Consumer Sentiment Final for February
The RSI clearly headed toward the overbought range during the week, by reaching the level of 56 on Friday. Moving average of 50 days continues to move in parallel with its MA200 counterpart, without an indication that the potential cross might come anytime soon.
The week ahead could bring back some volatility on the market, as PCE data are scheduled to be released. As markets are now closely focused on inflation data, there is high potential for USD to react on the data in case that they are below or above current market expectations. In this sense, there is an equal probability for the price of gold to test $2K support, but also for testing of $2.050 resistance line.
Important news to watch during the week ahead are:
USD: Durable Goods Orders for January, CB Consumer Confidence for February, GDP Growth rate second estimate for Q4, PCE Price Index for January, ISM Manufacturing PMI for February, Michigan Consumer Sentiment Final for February
