The price of gold was relatively steady during the previous week, as it reflected a relatively lower USD volatility during the previous week. Luckily, there has also not been any new stress situations on the geopolitical scene, so gold could take its path of the negative correlation toward the USD. In this sense, it should be considered that expectations on a rate cut during this year are still driving the value of USD, while the FOMC meeting is scheduled for the week ahead, which might imply some further volatility of the gold price in the coming period.
The price of gold was moving within a range between $2.035 down to $2.009. The RSI is holding below the level of 50, implying that the market is still more oriented toward the oversold side. Moving averages of 50 and 200 days continue to move as two parallel lines, without an indication on potential cross in the coming period.
It could be expected that gold will continue to test the $2K support line at the start of the week ahead. There is a small probability for this line to be breached in the coming week. The more likely scenario would be another move to the upside, until the level of $2.040, with decreased probability that the resistance line at $2.050 might be tested on this occasion.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for January, Fed Interest Rate Decision, ISM Manufacturing PMI for January, Non-Farm Payrolls for January, Unemployment Rate for January, Michigan Consumer Sentiment Final for January
The price of gold was moving within a range between $2.035 down to $2.009. The RSI is holding below the level of 50, implying that the market is still more oriented toward the oversold side. Moving averages of 50 and 200 days continue to move as two parallel lines, without an indication on potential cross in the coming period.
It could be expected that gold will continue to test the $2K support line at the start of the week ahead. There is a small probability for this line to be breached in the coming week. The more likely scenario would be another move to the upside, until the level of $2.040, with decreased probability that the resistance line at $2.050 might be tested on this occasion.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for January, Fed Interest Rate Decision, ISM Manufacturing PMI for January, Non-Farm Payrolls for January, Unemployment Rate for January, Michigan Consumer Sentiment Final for January
