Gold: powered by Powell
A brand new ATH or the price of gold occurred during the previous week, supported by weakened US Dollar. Gathering in the Wyoming Jackson Hole Symposium revealed plans of the Fed that the time has come for the first interest rate cut soon. Although Powell did not mention when this cut might occur, market participants are almost sure at this moment that it will occur at September's FOMC meeting. As the US Dollar was weakening on the news, the price of gold gained almost 1% during the week.
The price of gold breached the resistance at 2.5K, ending the week at $2.512. The RSI ended the week at the level of 63, indicating that the price could go higher from this level until the clear overbought market side is reached. Moving averages of 50 and 200 days still continue to move as two parallel lines with the up trend, without any indication that the cross might come anytime soon.
The charts are a bit tricky at this moment. There is certainly potential for the higher grounds of the price of gold, but, there is also indicated a potential for a short term move to the downside. In this sense, there is some probability that the price of gold would revert a bit within the week ahead. The level of $2.440 is currently indicated at charts as a potential short term stop for the price of gold, but it is unclear whether this level might be reached within a week or two. Certainly, there is no potential for lower grounds in the near future period.
The price of gold breached the resistance at 2.5K, ending the week at $2.512. The RSI ended the week at the level of 63, indicating that the price could go higher from this level until the clear overbought market side is reached. Moving averages of 50 and 200 days still continue to move as two parallel lines with the up trend, without any indication that the cross might come anytime soon.
The charts are a bit tricky at this moment. There is certainly potential for the higher grounds of the price of gold, but, there is also indicated a potential for a short term move to the downside. In this sense, there is some probability that the price of gold would revert a bit within the week ahead. The level of $2.440 is currently indicated at charts as a potential short term stop for the price of gold, but it is unclear whether this level might be reached within a week or two. Certainly, there is no potential for lower grounds in the near future period.
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