Previous week was an important one for the USD when it comes to monetary policy and economic data. FED increased interest rates, as expected, but most importantly, the posted figures for inflation show that it is weakening further. At the same time GDP figures of 2.4% in Q2 were highly above from what the market was expecting. This supported market sentiment and pushed the USD to higher grounds. At the same time, Gold was trying to follow its negative correlation with USD, but with a lagging effect. It is interesting to see that daily trading volumes were significantly increased, with prevailing buying orders.
Highest weekly level reached was $1.980. Beside increased daily trading volume, the $2K continues to be a hard task for Gold in this period. Soon after reaching the $1.980, the price of Gold reverted a bit to the downside, ending the week at level of $1.959. Support line at $1.950 has been tested. RSI reached level of 50, however there is still no clear indication that investors are ready to push the price of Gold toward the oversold side. Moving average of 50 days has shortly stopped with convergence toward the MA200, which is an indication that potential cross might be postponed.
Gold will start the week ahead by testing the $1.950 support line. At this moment there is decreased probability that this line might be clearly breached to the downside. However, at the same time, there is also no indication that $2K could be tested. It would be more realistic that the price of Gold will take another round between $1.980 and $1.950 levels.
Important news to watch during the week ahead are:
USD: ISM Manufacturing PMI for July, ISM services PMI for July, Non-Farm Payrolls and Unemployment Rate for July
Highest weekly level reached was $1.980. Beside increased daily trading volume, the $2K continues to be a hard task for Gold in this period. Soon after reaching the $1.980, the price of Gold reverted a bit to the downside, ending the week at level of $1.959. Support line at $1.950 has been tested. RSI reached level of 50, however there is still no clear indication that investors are ready to push the price of Gold toward the oversold side. Moving average of 50 days has shortly stopped with convergence toward the MA200, which is an indication that potential cross might be postponed.
Gold will start the week ahead by testing the $1.950 support line. At this moment there is decreased probability that this line might be clearly breached to the downside. However, at the same time, there is also no indication that $2K could be tested. It would be more realistic that the price of Gold will take another round between $1.980 and $1.950 levels.
Important news to watch during the week ahead are:
USD: ISM Manufacturing PMI for July, ISM services PMI for July, Non-Farm Payrolls and Unemployment Rate for July
