Gold: close to oversold
While other markets are slowing down in terms of daily trading volumes, volumes of Gold trading have significantly increased since the mid of July. Gold continues to be in the spotlight of the market, regardless of its decreasing price. The USD remained relatively flat during the previous week, as investors are still digesting inflation data and PPI posted during the week. Although official inflation continues to decrease further, still, the producer price index shows the possibility for inflation to remain stickier in the coming months. Another question is what the Fed will do about it till the end of this year.
The price of gold started the previous week modestly below the resistance line at $1.950 and moved toward the next short term support at $1.912. With this move, gold erased all earnings since the end of June. RSI reached level of 38, implying that investors are still eyeing the oversold side. It also leaves some space for the price of gold to move lower, until a clear oversold side is finally reached. Moving averages of 50 and 200 days continue to converge toward each other, with still relatively higher distance, in which sense, a potential cross is still not in the store.
There is a tricky moment on charts in technical analysis. Namely, charts are showing the potential for the short reversal to the upside, but its sustainability cannot be confirmed at this moment. The potential for reversal is up to the level of resistance line at $1.950. There is no indication that the price might go higher from this level. However, on the opposite side, there is increased potential for the lower grounds from $1.900 level. RSI is also confirming this probability. Still, it should not be expected for lower grounds to occur in the week ahead.
Important news to watch during the week ahead are:
USD: Retail Sales for July, Building Permits for July, FOMC Minutes
The price of gold started the previous week modestly below the resistance line at $1.950 and moved toward the next short term support at $1.912. With this move, gold erased all earnings since the end of June. RSI reached level of 38, implying that investors are still eyeing the oversold side. It also leaves some space for the price of gold to move lower, until a clear oversold side is finally reached. Moving averages of 50 and 200 days continue to converge toward each other, with still relatively higher distance, in which sense, a potential cross is still not in the store.
There is a tricky moment on charts in technical analysis. Namely, charts are showing the potential for the short reversal to the upside, but its sustainability cannot be confirmed at this moment. The potential for reversal is up to the level of resistance line at $1.950. There is no indication that the price might go higher from this level. However, on the opposite side, there is increased potential for the lower grounds from $1.900 level. RSI is also confirming this probability. Still, it should not be expected for lower grounds to occur in the week ahead.
Important news to watch during the week ahead are:
USD: Retail Sales for July, Building Permits for July, FOMC Minutes
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