Gold: steady way up?It was a strongly challenging week for financial markets. The Feds projections for year 2025 came as a huge surprise, as “only” 50 bps planned cut during the course of the year, and persistent inflation was not something that markets were willing to hear, while preparing to close the year. The US Dollar gained in strength, bringing the price of gold toward the downside. The minimum weekly level reached was $2.587. The gold is ending the week at the level of $2.620.
The RSI continues to move below the level of 50, indicating that the market is still not ready to make a clear move toward the overbought market side. The moving average of 50 days is trying to converge toward the MA200, but it slowly moves. Anyway, the potential cross is still not close.
The week ahead brings the Holiday season on Western markets. Traditionally, this is not a time in the year when any high moves occur. In this sense, one could expect a relatively calm week when financial markets are in question. The price of gold will continue to follow its negative correlation with the US Dollar, with potential relatively smaller moves around current levels.
