The price of Gold is clearly heading toward its balance of negative correlation with USD. After the market priced the Middle-East crisis, the price of Gold is now back toward the path of US fundamentals. Last week, inflation data increased the probability that the Fed will not increase reference interest rates for one more time during the course of this year, while the market is now trying to price the expectations on the rate cuts during the course of the next year. On these expectations, USD lost some of its value, white Gold re-gained.
The price of Gold started the previous week around level of $1.927 and was oriented toward the up side during the course of the week, ending it at level of $1.980. The level of $1.993 has been reached at Friday`s trading session, however, the $2K has not been clearly tested on this occasion. The RSI is still moving above the line of 50, with the highest level reached at the 58, showing that the market has still not exhausted the potential for the upside, until the clear overbought market side is reached. Moving averages of 50 and 200 days are currently moving as two parallel lines, but still without indication that the potential cross lies ahead.
Current charts are showing the potential for the $2K resistance line to be tested for one more time in the coming period. Still, there is no indication of a potential for higher moves from this level. A short reversal might bring the price of Gold again toward the support line at $1.970.
Important news to watch during the week ahead are:
USD: FOMC Minutes, Durable Goods Orders for October, Michigan Consumer Sentiment Final for November
The price of Gold started the previous week around level of $1.927 and was oriented toward the up side during the course of the week, ending it at level of $1.980. The level of $1.993 has been reached at Friday`s trading session, however, the $2K has not been clearly tested on this occasion. The RSI is still moving above the line of 50, with the highest level reached at the 58, showing that the market has still not exhausted the potential for the upside, until the clear overbought market side is reached. Moving averages of 50 and 200 days are currently moving as two parallel lines, but still without indication that the potential cross lies ahead.
Current charts are showing the potential for the $2K resistance line to be tested for one more time in the coming period. Still, there is no indication of a potential for higher moves from this level. A short reversal might bring the price of Gold again toward the support line at $1.970.
Important news to watch during the week ahead are:
USD: FOMC Minutes, Durable Goods Orders for October, Michigan Consumer Sentiment Final for November
