Gold: The $4K - make it or break it?Gold was holding higher grounds during the previous week. Its price was moving in a relatively shorter range, between $4.002 and $4.130. Charts are showing a sort of narrowing moves within this range, in which sense, it might be expected a break in the coming period, whether to the up- or to the downside. The catalyst for such a move might be expectations of the Fed rate cut in December. Posted delayed jobs data are showing mixed signals, with the unemployment rate modestly increased in September to 4,4% from 4,3% previously.
The RSI was moving around the level of 50 during the week, reflecting the price movements without a clear trend. The MA200 is now strongly converging toward the MA50, where the potential cross might be expected in the near term period.
The support line at $4K remains strong, while it has not been tested during the week. The move above the $4.100 also remains a high challenge for gold at this moment. Considering the narrowing of price range traded during the day, a break to one side might be expected in the week(s) ahead. On the downside, the $4K remains a support, while a break from this level would lead the price of gold down to $3.920. On the upside, the $4,1K remains a short resistance, while the break of this level would lead the price toward the $4,2K.
