Third week in a row, Gold is not following correlations with USD, while its moves are mostly influenced by developments in the Middle East. During the previous week, Gold again tried to break the $2K psychological line, but for one more week it was without success. As long as tensions are present, it could be expected that the price of Gold will have its own path in the coming period.
The highest weekly level reached was at the level of $2.006. The price of Gold soon reverted to the downside, but only till the level of $1.970 support line, which has been tested during the week. Still, the Gold is ending the week at level of $1.992 where the price for one more time tried to break the $2K level. The RSI is moving around 66 level after reaching a clear overbought side two weeks ago. Still, based on the indicator, it could not be drawn a conclusion whether the market actually started a reversal. It seems too early in time to look toward the oversold side. Moving average of 50 days is currently converging quite close toward the MA200, indicating a potential cross in the coming days. The cross will be an indication of potential trend reversal in the coming weeks, but it is too early to note such a development.
The market conditions for Gold could still not be treated as “normal” considering impact from instability in a Middle East region. In this sense, technical analysis might provide some misleading indications, in case that fundamentals strongly interfere. However, it could be noted that current charts are showing a potential for a reversal in the coming period. There is a potential for $1.970 to be tested for one more time, with some probability that the price might reach a short term stop at $1.950.
Important news to watch during the week ahead are:
USD: Fed Chair Powell Speech, Michigan Consumer Sentiment preliminary for November.
The highest weekly level reached was at the level of $2.006. The price of Gold soon reverted to the downside, but only till the level of $1.970 support line, which has been tested during the week. Still, the Gold is ending the week at level of $1.992 where the price for one more time tried to break the $2K level. The RSI is moving around 66 level after reaching a clear overbought side two weeks ago. Still, based on the indicator, it could not be drawn a conclusion whether the market actually started a reversal. It seems too early in time to look toward the oversold side. Moving average of 50 days is currently converging quite close toward the MA200, indicating a potential cross in the coming days. The cross will be an indication of potential trend reversal in the coming weeks, but it is too early to note such a development.
The market conditions for Gold could still not be treated as “normal” considering impact from instability in a Middle East region. In this sense, technical analysis might provide some misleading indications, in case that fundamentals strongly interfere. However, it could be noted that current charts are showing a potential for a reversal in the coming period. There is a potential for $1.970 to be tested for one more time, with some probability that the price might reach a short term stop at $1.950.
Important news to watch during the week ahead are:
USD: Fed Chair Powell Speech, Michigan Consumer Sentiment preliminary for November.
