As USD was gaining, Gold was losing value during the previous week. The markets are still digesting interest rates which will be elevated for a longer period of time, hence, equities, Treasuries and Gold lost in value, while the US Dollar was gaining. The correlation between Gold and USD was supported during the previous week, however, it could be noted that the market had another overreacted session when the price of Gold is in question. The xauusd was traded sharply toward the downside, so the price of Gold ended the week at $1.848. The support line at $1.880 was too easily broken, which increases probability for this level to be tested in the coming week.
The RSI indicator was clearly moved toward the oversold side, which adds to potential for the price of gold to return toward the $1.880 line. At the same time MA50 crossed the MA200 from the upside, indicating a potential for the trend reversal. This would not be positive for gold if the so-called “dead-cross” confirms in the coming week, considering that this formation in technical analysis indicates a potential for a change of a trend.
For the week ahead, Gold is left to clearly test the $1.880 line, with small potential that the price could go much higher from this level. On the opposite side, the next support line stands at $1.800 with extremely low probability that it could be reached in a week ahead.
Important news to watch during the week ahead are:
USD: ISM Manufacturing PMI for September, ISM Services PMI for September, Non-Farm Payrolls and Unemployment rate for September
The RSI indicator was clearly moved toward the oversold side, which adds to potential for the price of gold to return toward the $1.880 line. At the same time MA50 crossed the MA200 from the upside, indicating a potential for the trend reversal. This would not be positive for gold if the so-called “dead-cross” confirms in the coming week, considering that this formation in technical analysis indicates a potential for a change of a trend.
For the week ahead, Gold is left to clearly test the $1.880 line, with small potential that the price could go much higher from this level. On the opposite side, the next support line stands at $1.800 with extremely low probability that it could be reached in a week ahead.
Important news to watch during the week ahead are:
USD: ISM Manufacturing PMI for September, ISM Services PMI for September, Non-Farm Payrolls and Unemployment rate for September
