The US inflation figures were the main topic on the markets during the previous week. As USD was strengthening a bit after the surprising data on January inflation, so the gold was following its negative correlation with USD, and tried to break the $2K support line. January inflation figures showed the possibility that the inflation might be a bit harder to put into the clear 2% path, then previously expected by the market. This further implies that the Fed will not cut rates as expected by the market, but it might still need some time for such a move. The price of gold turned to the downside, reaching its lowest weekly level at $1.985. Still, the support line at $2K remained to hold, it has not been clearly broken on this occasion.
The RSI reached the lowest level at 36, however a clear oversold market side has not been reached. The indicator is ending the week at level of 46, but it is too early to note if the market is ready to take a path toward the overbought side. Moving average of 50 days for the last two weeks is moving as a parallel line with MA200, without an indication on a possible cross in the coming period.
Within a week ahead, some increased volatility might be expected around February 21st, when the FOMC Minutes from Fed`s latest monetary meeting are scheduled to be released. In case that there is some news recorded in the Minutes which the market has not yet priced, then it could be expected some stronger moves to either side. In case that there are no unknowns, then it should be expected that the price of gold will be able to sustain the $2K support line, although the selling pressures might push the price shortly to the $1.980 level.
Important news to watch during the week ahead are:
USD: FOMC Minutes will be published on February 21st
The RSI reached the lowest level at 36, however a clear oversold market side has not been reached. The indicator is ending the week at level of 46, but it is too early to note if the market is ready to take a path toward the overbought side. Moving average of 50 days for the last two weeks is moving as a parallel line with MA200, without an indication on a possible cross in the coming period.
Within a week ahead, some increased volatility might be expected around February 21st, when the FOMC Minutes from Fed`s latest monetary meeting are scheduled to be released. In case that there is some news recorded in the Minutes which the market has not yet priced, then it could be expected some stronger moves to either side. In case that there are no unknowns, then it should be expected that the price of gold will be able to sustain the $2K support line, although the selling pressures might push the price shortly to the $1.980 level.
Important news to watch during the week ahead are:
USD: FOMC Minutes will be published on February 21st
