Gold: setting stage for the next move
The US jobs data were in the center of market attention during the previous week, which implied some higher volatility of USD. The price of gold was following general negative correlation with USD, moving between levels of $2.524 down to $2.470. Still, Fridays weaker than expected jobs data pushed the price of gold back to higher levels, ending the week at $2.516.
The RSI is still moving at levels above the 50 line, ending the week at the level of 59. This indicates that the market is still not ready to switch attention toward the oversold market side, however, there is also no strength for a clear move toward the overbought market side. Moving averages of 50 and 200 days continue to move as two parallel lines with the uptrend, without an indication over a potential cross in the coming period.
The markets will use the week ahead to digest latest jobs data, and potential for a next Fed move in terms of rate cut during their September FOMC session. Current charts are showing a potential for a short term reversal of the price of gold, however, it should not be expected to make any significant move. Levels above $2.450 might be tested. On the opposite side, there is still a potential for a new ATH, however, it is unclear whether this might happen in the week ahead.
The RSI is still moving at levels above the 50 line, ending the week at the level of 59. This indicates that the market is still not ready to switch attention toward the oversold market side, however, there is also no strength for a clear move toward the overbought market side. Moving averages of 50 and 200 days continue to move as two parallel lines with the uptrend, without an indication over a potential cross in the coming period.
The markets will use the week ahead to digest latest jobs data, and potential for a next Fed move in terms of rate cut during their September FOMC session. Current charts are showing a potential for a short term reversal of the price of gold, however, it should not be expected to make any significant move. Levels above $2.450 might be tested. On the opposite side, there is still a potential for a new ATH, however, it is unclear whether this might happen in the week ahead.
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