Gold: $1.920 is sustainable
There has not been significant data for USD published during the previous week, however, there has been some negative developments over the oil and gas prices. Namely, on one side Saudi Arabia announced its decision to continue with its decreased oil production by 1 million barrels per month till the end of this year, and on the other side, gas prices in the EU were increased by 10% as a consequence of a union strike in the largest gas production facility in Australia. The market is perceiving these developments as negative in a sense that they might put in jeopardize ongoing government fights against inflation in both the EU and the US.
The price of gold started the week modestly below the $1.950 resistance line, and moved to the downside, reaching the lowest weekly level at $1.915. Still, at Friday`s trading session, the price tried to move a bit back, reaching level of $1.930, but still ending the week at $1.919.
Current charts are pointing to the sustainability of the $1.920 short term support line. It has not been breached during the previous week, regardless of USD`s gaining in strength. The RSI continues to move around level of 50, exposing market uncertainty over the further moves. Moving average of 50 days is moving close to the MA200 counterpart, but it still manages to hold the distance, not providing indication that the lines are ready for a cross.
As per technical analysis for the week ahead, there is some probability for the price of gold to try to test for one more time $1.950 resistance level. At the same time, there is no indication that this level could be breached to the upside. Instead, the price might return back toward the $1.920 for one more time.
Important news to watch during the week ahead are:
USD: Inflation Rate for August, PPI for August, Retail Sales for August, Michigan Consumer Sentiment preliminary for September
The price of gold started the week modestly below the $1.950 resistance line, and moved to the downside, reaching the lowest weekly level at $1.915. Still, at Friday`s trading session, the price tried to move a bit back, reaching level of $1.930, but still ending the week at $1.919.
Current charts are pointing to the sustainability of the $1.920 short term support line. It has not been breached during the previous week, regardless of USD`s gaining in strength. The RSI continues to move around level of 50, exposing market uncertainty over the further moves. Moving average of 50 days is moving close to the MA200 counterpart, but it still manages to hold the distance, not providing indication that the lines are ready for a cross.
As per technical analysis for the week ahead, there is some probability for the price of gold to try to test for one more time $1.950 resistance level. At the same time, there is no indication that this level could be breached to the upside. Instead, the price might return back toward the $1.920 for one more time.
Important news to watch during the week ahead are:
USD: Inflation Rate for August, PPI for August, Retail Sales for August, Michigan Consumer Sentiment preliminary for September
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