The US inflation data were the major input for the markets during the previous week. As inflation showed to be a persistent one, the investors were correcting their previous assumptions related to timing of the first Fed's rate cuts during the course of this year. As USD was gaining in value, the price of gold experienced its corrective moves.
The price of gold started the week by reaching its highest level at $2.188, but soon reverted toward the downside, finishing the week at level of $2.155. The RSI finally moved down from the overbought side, reaching the level of 67. This still does not show that the market is clearly on the path toward the oversold side, so some volatility might be expected during the week ahead. Moving average of 50 days still continues to diverge from its MA200 counterpart not indicating that the potential cross is in the store, and the trend changes along with it.
During the week ahead the FOMC meeting is scheduled, as well as FOMC economic projection. This might bring back some volatility on the markets. In this sense, the price of gold might continue its path toward the downside and clear testing of the $2.150 support line. On the opposite side, there is equal probability for a move back toward the $2.180 level.
Important news to watch during the week ahead are:
USD: Building Permits preliminary for February, FED Interest Rate Decision, FOMC Economic Projections
The price of gold started the week by reaching its highest level at $2.188, but soon reverted toward the downside, finishing the week at level of $2.155. The RSI finally moved down from the overbought side, reaching the level of 67. This still does not show that the market is clearly on the path toward the oversold side, so some volatility might be expected during the week ahead. Moving average of 50 days still continues to diverge from its MA200 counterpart not indicating that the potential cross is in the store, and the trend changes along with it.
During the week ahead the FOMC meeting is scheduled, as well as FOMC economic projection. This might bring back some volatility on the markets. In this sense, the price of gold might continue its path toward the downside and clear testing of the $2.150 support line. On the opposite side, there is equal probability for a move back toward the $2.180 level.
Important news to watch during the week ahead are:
USD: Building Permits preliminary for February, FED Interest Rate Decision, FOMC Economic Projections
