There have been a lot of macro developments during the previous week, including FOMC meeting and softer than expected US jobs data, which left the gold outside of the investors focus. However, those with a significant prior exposure took the chance to close positions and book some profits. In this sense, the price of gold was in a sort of reversal during the week. It started at the level of $2.345, however, during the week it traded much lower, trying to break the $2.300 support line to the downside. Still, the price of gold is ending the week at the level of $2.300.
The RSI clearly entered into reversal mode, finishing the week at the level of 50. The market is currently eyeing the oversold market side. Moving average of 50 days is still strongly diverging from its MA200 counterpart, not indicating that potential trend reversal might come anytime soon.
It is evident from charts that the price of gold is on its short reversal path. It will start the week by testing the current support line at $2.300 with higher probability that this level could be breached to the downside. However, considering that during the week ahead there are no significant macro news set for a release, it should not be expected that the price could go much lower from the current levels.
The RSI clearly entered into reversal mode, finishing the week at the level of 50. The market is currently eyeing the oversold market side. Moving average of 50 days is still strongly diverging from its MA200 counterpart, not indicating that potential trend reversal might come anytime soon.
It is evident from charts that the price of gold is on its short reversal path. It will start the week by testing the current support line at $2.300 with higher probability that this level could be breached to the downside. However, considering that during the week ahead there are no significant macro news set for a release, it should not be expected that the price could go much lower from the current levels.
