Gold prices reacted to stronger jobs and consumer sentiment data and declined to less than $2,000 at the time of this report being written.. However, the downside may be limited if inflationary pressures decrease with the upcoming CPI report and FOMC meeting determining to a high degree the Fed's stance on rate cuts. The release of the inflation report on Tuesday could affect the anticipated interest rate maintenance at the FOMC meeting where the last Federal Reserve meeting for 2023 on Wednesday, with expectations of maintaining current interest rates. The Bank of England, European Central Bank, and Swiss National Bank are also holding meetings this week.
From the technical point of view gold price is currently correcting to the downside after declining the support area of $2,020 which consisted of the 78.6% of the weekly Fibonacci retracement level and the 20 day moving average. The area of the 50 day moving average is being tested and is important to see the following sessions closing prices to determine the direction of the short term trend. The oversold Stochastic oscillator as well as the fact that the 50 day moving average is trading well above the 100 day moving average, both indicate that a correction to the upside might be the dominant scenario in the coming days.
From the technical point of view gold price is currently correcting to the downside after declining the support area of $2,020 which consisted of the 78.6% of the weekly Fibonacci retracement level and the 20 day moving average. The area of the 50 day moving average is being tested and is important to see the following sessions closing prices to determine the direction of the short term trend. The oversold Stochastic oscillator as well as the fact that the 50 day moving average is trading well above the 100 day moving average, both indicate that a correction to the upside might be the dominant scenario in the coming days.