The FOMC November meeting minutes revealed that the Fed is currently not planning to cut interest rates, however, further increase will depend on the inflation figures, which might be persistent, as per FOMC member concerns. At the same time, the market is currently pricing a 0% chance of rate increase in December, while a potential first rate cut might occur in May next year. The sentiment over potential further Fed moves have brought the US Dollar lower and the price of Gold to the higher grounds.
During the previous week Gold once again reached level of the $2K resistance. The highest weekly level reached was $2.006, which was the moment of the market exhaustion. The RSI index reached level of 61, but it is still not moving within the clear overbought territory. This leaves some space for the price of Gold to move a bit higher in order for the market to test the overbought side. Moving average of 50 days is currently moving very close to its MA200 counterpart, with a relatively small distance between lines, which might indicate a potential cross during the following period.
The price of Gold is currently at the beginning of a short term reversal point. Whether the price of Gold could reach higher grounds from the $2K resistance is questionable at this moment. A move toward the downside, might bring Gold back to the level of $1.970, with some probability that $1.950 might be tested.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for November, GDP Growth Rate second estimate for Q3, PCE Price Index for October, ISM Manufacturing PMI for October, Fed Chair Powell Speech
During the previous week Gold once again reached level of the $2K resistance. The highest weekly level reached was $2.006, which was the moment of the market exhaustion. The RSI index reached level of 61, but it is still not moving within the clear overbought territory. This leaves some space for the price of Gold to move a bit higher in order for the market to test the overbought side. Moving average of 50 days is currently moving very close to its MA200 counterpart, with a relatively small distance between lines, which might indicate a potential cross during the following period.
The price of Gold is currently at the beginning of a short term reversal point. Whether the price of Gold could reach higher grounds from the $2K resistance is questionable at this moment. A move toward the downside, might bring Gold back to the level of $1.970, with some probability that $1.950 might be tested.
Important news to watch during the week ahead are:
USD: CB Consumer Confidence for November, GDP Growth Rate second estimate for Q3, PCE Price Index for October, ISM Manufacturing PMI for October, Fed Chair Powell Speech
