The US economy is showing resilience over the ongoing monetary measures imposed by the Fed in order to cope with inflation. Lately posted jobs figures show some slowdown in new jobs created, which might be a seasonal effect, still, what bothers the markets the most is increase in hourly earnings, which might push the inflation further to the upside and diminish Fed`s efforts to fight inflation. Posted figures increased market expectations that the Fed might increase rates further at July`s FOMC meeting. These expectations pushed USD to the lower grounds as of the end of the previous week, however, Gold is still lagging behind.
The price of Gold was moving in a relatively short range during the previous week, from level of $1.900 up to $1.930. Gold has finished the week modestly below the highest level. RSI was moved from 40 up to 45, but the indicator is still showing that the market continues to be more oriented toward the oversold side. Moving average of 50 days continues to converge toward the MA200 counterpart, indicating a potential cross in the coming period.
Current charts are pointing that the price of gold might test again $1.930 in the coming days, but without potential to go beyond this level. On the opposite side, there is high potential for $1.900 to be tested once again, which decreases the probability for the next support line at $1.850 to be tested in the week ahead.
Important news to watch during the week ahead are:
USD: Inflation rate in June, Producer Price Index in June, Michigan Consumer Sentiment in June
The price of Gold was moving in a relatively short range during the previous week, from level of $1.900 up to $1.930. Gold has finished the week modestly below the highest level. RSI was moved from 40 up to 45, but the indicator is still showing that the market continues to be more oriented toward the oversold side. Moving average of 50 days continues to converge toward the MA200 counterpart, indicating a potential cross in the coming period.
Current charts are pointing that the price of gold might test again $1.930 in the coming days, but without potential to go beyond this level. On the opposite side, there is high potential for $1.900 to be tested once again, which decreases the probability for the next support line at $1.850 to be tested in the week ahead.
Important news to watch during the week ahead are:
USD: Inflation rate in June, Producer Price Index in June, Michigan Consumer Sentiment in June
