Last week the price of gold was moving within a relatively short range. The highest-lowest levels were $2.360 and $2.320. The US PCE data showed no difference from current market expectations, in which sense, the market continued to price currently known facts, and it came without too much change in levels from the previous period. Still, concerns over the next Fed`s move on the interest rate side remain the major topic for the majority of financial markets.
In line with the short moves on the spot side, the RSI also moved within a relatively low range around level of 50. Still, as of the end of the week it slipped to the level of 46, indicating that the market is probably turning head toward the oversold market side. Moving average of 50 days still continues to strongly diverge from its MA 200 counterpart, not indicating a possibility for a cross anytime soon.
Charts continue to be mixed for the second week in a row. Usually, when the market starts to move within such a short range (traders descriptively call it “boring market”) it means that it will soon break toward the one side. In the case of gold it might easily be toward the downside, however, not before some higher levels are tested first. As per current charts, the level of $2.360 might be easily tested for one more time, still, the downside stays open for the week ahead. The level of $2.280 is indicated on the charts, but still, it probably won’t be the level of gold for the week ahead.
In line with the short moves on the spot side, the RSI also moved within a relatively low range around level of 50. Still, as of the end of the week it slipped to the level of 46, indicating that the market is probably turning head toward the oversold market side. Moving average of 50 days still continues to strongly diverge from its MA 200 counterpart, not indicating a possibility for a cross anytime soon.
Charts continue to be mixed for the second week in a row. Usually, when the market starts to move within such a short range (traders descriptively call it “boring market”) it means that it will soon break toward the one side. In the case of gold it might easily be toward the downside, however, not before some higher levels are tested first. As per current charts, the level of $2.360 might be easily tested for one more time, still, the downside stays open for the week ahead. The level of $2.280 is indicated on the charts, but still, it probably won’t be the level of gold for the week ahead.
