Although there had not been a release of any currently significant macro data during the previous week, still, the market had a strong reaction to released data on the weekly claims for state unemployment benefits. These figures were much higher than expected, which supported market optimism that the Fed might cut interest rates sooner from September, as currently estimated. The spot gold rose around 1% with a highest weekly level at $2.376 reached in Friday's trading session. Still, the metal is ending the week a bit lower, at $2.360.
The RSI continues to move between levels of 50 and 60, indicating that the market is still not ready to enter into a clear reversal toward the oversold side. Moving average of 50 days continues to diverge from MA200 counterpart, without any indication that its reversal might come anytime soon, let alone potential cross.
The market is currently set on the CPI data which will be released during the week ahead. In case of any surprises and deviations from market estimates, increased volatility might be imposed. As per current charts, the price of gold has equal probabilities for both up and down sides. At the same time $2.400 might be tested, however, there is also equal probability for a reversal toward the $2.300. At this moment, it seems that the US CPI will decide the future market move.
The RSI continues to move between levels of 50 and 60, indicating that the market is still not ready to enter into a clear reversal toward the oversold side. Moving average of 50 days continues to diverge from MA200 counterpart, without any indication that its reversal might come anytime soon, let alone potential cross.
The market is currently set on the CPI data which will be released during the week ahead. In case of any surprises and deviations from market estimates, increased volatility might be imposed. As per current charts, the price of gold has equal probabilities for both up and down sides. At the same time $2.400 might be tested, however, there is also equal probability for a reversal toward the $2.300. At this moment, it seems that the US CPI will decide the future market move.
