Gold: Fed is on the move
During the previous week USD managed to regain some of its strength, after losing significantly during the past two weeks. Gold was lagging, but finally managed to return to the negative correlation with the value of USD. However, for the week ahead, there could be some higher volatility, considering that the Fed will discuss whether to further increase interest rates or skip this turn. Majority of market participants are anticipating another 25 bps hike, however, posted economic data are showing some mixed results. Currently there is a question whether the US is on the path to enter into recession or will the economy be able to escape such a scenario? How the Fed perceives the current state of the economy will be known on July 26th.
The price of Gold was strongly supported during the previous week, when it reached its highest weekly level at $1.985. However, as of the end of the week, selling orders were prevailing on the market, so a short correction occurred till the level of $1.957, where gold is finishing the week. RSI is still holding above level of 50, it finished the week at 55, still not clearly indicating that investors are ready to eye the oversold side. Moving average continues its convergence toward MA200, increasing the potential for a cross in the coming period.
Gold entered into path toward the resistance line at 2K, however, there has not been market strength for a move toward this level. This path was reverted by significant selling orders as of the end of the previous week. The price of gold went back to the support line at $1.950, and it could be expected that this line will be tested in the week ahead. At this moment, charts are pointing to a potential for the price of gold to go back to the $1.930 level, still with a lower probability.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for July, FED Interest Rate Decision (expectation is 5.5%), Durable Goods Orders for June, GDP Growth Rate for Q2, PCE Price Index for June, Michigan Consumer Sentiment – final for July
The price of Gold was strongly supported during the previous week, when it reached its highest weekly level at $1.985. However, as of the end of the week, selling orders were prevailing on the market, so a short correction occurred till the level of $1.957, where gold is finishing the week. RSI is still holding above level of 50, it finished the week at 55, still not clearly indicating that investors are ready to eye the oversold side. Moving average continues its convergence toward MA200, increasing the potential for a cross in the coming period.
Gold entered into path toward the resistance line at 2K, however, there has not been market strength for a move toward this level. This path was reverted by significant selling orders as of the end of the previous week. The price of gold went back to the support line at $1.950, and it could be expected that this line will be tested in the week ahead. At this moment, charts are pointing to a potential for the price of gold to go back to the $1.930 level, still with a lower probability.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for July, FED Interest Rate Decision (expectation is 5.5%), Durable Goods Orders for June, GDP Growth Rate for Q2, PCE Price Index for June, Michigan Consumer Sentiment – final for July
Похожие публикации
Отказ от ответственности
Все виды контента, которые вы можете увидеть на TradingView, не являются финансовыми, инвестиционными, торговыми или любыми другими рекомендациями. Мы не предоставляем советы по покупке и продаже активов. Подробнее — в Условиях использования TradingView.