Gold: close to a triangle break
The FOMC meeting on Wednesday was the major weekly event, which brought back some higher volatility on the markets. Changes in Fed`s projections and rhetoric toward “higher for longer” is not something that markets welcomed with a positive sentiment. The US equities and Treasuries reacted in a negative way, USD gained in value; still, gold was a bit lagging behind USD moves. The price of gold reached its highest weekly level at $1.945, without a strength to reach a short term significant line at $1.950. Gold is finishing the week at level of $1.925. Since the end of August RSI is trying to clearly break the 50 level to the upside, but still without success. Same was during the week before. Moving averages of 50 and 200 days are moving quite close to each other, implying a possibility for a cross to occur in the coming period.
Regardless of increased daily trading volumes within a recent period, gold was not able to make any significant moves, but was mostly ranging between $1.920 and $1.940. This path is slowly coming to an end, with the price of gold reaching the end of a triangle formation. This implies that soon it could be expected a break toward the up- or down-side of the chart. For the second week in a row, charts are showing equal probabilities for the price move toward either side. A break of a triangle toward the upside, would lead the price of gold toward $1.970, after a short stop at $1.950. In case that a triangle is broken toward the downside, then the price of gold might find new levels around $1.880 support.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for September, Durable Goods Orders for August, GDP Growth Rate final for Q2. PCE Price Index for August, Michigan Consumer Sentiment final for September
Regardless of increased daily trading volumes within a recent period, gold was not able to make any significant moves, but was mostly ranging between $1.920 and $1.940. This path is slowly coming to an end, with the price of gold reaching the end of a triangle formation. This implies that soon it could be expected a break toward the up- or down-side of the chart. For the second week in a row, charts are showing equal probabilities for the price move toward either side. A break of a triangle toward the upside, would lead the price of gold toward $1.970, after a short stop at $1.950. In case that a triangle is broken toward the downside, then the price of gold might find new levels around $1.880 support.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for September, Durable Goods Orders for August, GDP Growth Rate final for Q2. PCE Price Index for August, Michigan Consumer Sentiment final for September
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