It was another relatively steady week for the price of gold, which was moving in a short range. The markets were focused on the FOMC meeting and Fed's rate decision, and inputs on the course of the US economy as perceived by Fed members. The major impact came from the much better than expected US jobs data, which made an impact on USD, price of gold and US Treasuries.
Gold was moving within a range from $2.017 up to $2.063 in Thursday trading session, however, it ended the week at $2.039. The RSI reached the level of 58, after which, it reverted toward the 51 on Friday, following the USD gains. Moving average of 50 days slowed down its divergence from MA200, however, the cross is still not near, considering distance between two lines.
During the previous week gold was testing the resistance line at $2.050, without strength to break it. This was the second time that this level has been tested for the upside since December last year. At the same time support line at $2K is pending clear testing, but based on current charts, there is relatively low probability that it might occur within a week ahead. Considering that there are no significant data which are scheduled for a release in a week ahead, there is a higher chance for the price of gold to continue testing the $2.050 resistance, and move shortly back toward the $2.030-$2.020 range.
Important news to watch during the week ahead are:
USD: ISM Services PMI for January
Gold was moving within a range from $2.017 up to $2.063 in Thursday trading session, however, it ended the week at $2.039. The RSI reached the level of 58, after which, it reverted toward the 51 on Friday, following the USD gains. Moving average of 50 days slowed down its divergence from MA200, however, the cross is still not near, considering distance between two lines.
During the previous week gold was testing the resistance line at $2.050, without strength to break it. This was the second time that this level has been tested for the upside since December last year. At the same time support line at $2K is pending clear testing, but based on current charts, there is relatively low probability that it might occur within a week ahead. Considering that there are no significant data which are scheduled for a release in a week ahead, there is a higher chance for the price of gold to continue testing the $2.050 resistance, and move shortly back toward the $2.030-$2.020 range.
Important news to watch during the week ahead are:
USD: ISM Services PMI for January
