As geopolitical tensions are calming down, gold is returning to catch up with its negative correlation with the USD. As the USD gained in value during the previous week, the price of the gold was down by 1% on a weekly level. Although gold started the previous week around the level of $2.058, still, it has reached the lowest weekly level at $2K, in order to swiftly revert toward the closing price of $2.029. The RSI is still moving below the level of 50, indicating that investors are still more oriented toward the oversold side. Moving average of 50 days is slowing its divergence from MA200, but the potential cross is not in store.
The support and also psychological level of $2K has been tested during the previous week, and has successfully resisted selling pressures. In this sense, the level of 2.050 as a short term resistance line could be the next target of gold in the week ahead. Still, there is also some probability for the $2K level to be tested for one more time.
Important news to watch during the week ahead are:
USD: Durable Goods Orders for December, GDP Growth Rate for Q4, PCE Price Index for December
The support and also psychological level of $2K has been tested during the previous week, and has successfully resisted selling pressures. In this sense, the level of 2.050 as a short term resistance line could be the next target of gold in the week ahead. Still, there is also some probability for the $2K level to be tested for one more time.
Important news to watch during the week ahead are:
USD: Durable Goods Orders for December, GDP Growth Rate for Q4, PCE Price Index for December
