Gold: the sky is limit
Weakening US inflation figures are impacting market sentiment that the Fed finally has a case for the rate cut at their September FOMC meeting. The price of gold started the previous week by testing the $2,5K level, while the rest of the week the gold was gaining further, reaching its highest weekly level at $2.585. This level was also marked as the new all time highest level for the price of gold. The metal is ending the week at the level of $2.576.
The RSI reached the level of 68, which is quite close to the overbought market side. Still, a clear overbought has not been reached. Moving averages of 50 and 200 days continue to move as two parallel lines with an uptrend, without any indication of potential cross in the coming period.
After a strong move to one side, it could be expected some relaxation in the week ahead. A short reversal might be in store for the price of gold in the week ahead, however, considering current demand for this asset, it should not be expected to make any significant move to the downside. There is some probability that levels around $2.550 could be tested. A potential for higher grounds could be expected in some other week. Also it should be considered that the FOMC meeting is scheduled for September 19th, when the Fed will decide on the potential cut of interest rates. Some higher volatility should be expected in the week ahead on all financial markets.
The RSI reached the level of 68, which is quite close to the overbought market side. Still, a clear overbought has not been reached. Moving averages of 50 and 200 days continue to move as two parallel lines with an uptrend, without any indication of potential cross in the coming period.
After a strong move to one side, it could be expected some relaxation in the week ahead. A short reversal might be in store for the price of gold in the week ahead, however, considering current demand for this asset, it should not be expected to make any significant move to the downside. There is some probability that levels around $2.550 could be tested. A potential for higher grounds could be expected in some other week. Also it should be considered that the FOMC meeting is scheduled for September 19th, when the Fed will decide on the potential cut of interest rates. Some higher volatility should be expected in the week ahead on all financial markets.
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