The FOMC meeting was held during the previous week, where the Fed held interest rates on hold for one more time. Still, addressing the topic of potential negative effects of trade tariffs on the US economy, Fed Chair Powell assured the public that the Fed will react immediately, in case of higher deterioration of the jobs market and stronger increase in inflation. This improved investors sentiment in which sense, the US equity market gained, as well as US Dollar. At the same time, the price of gold dropped during the week from the level of $3.430 down to $3.324 as of the end of the trading week.
The RSI is still moving relatively high, closing the week at the level of 55. It seems that the market is still not ready to take the clear path toward the oversold market side. Moving averages of 50 and 200 days continue to move without any change, as two parallel lines with an uptrend. There is no any kind of indication that the potential cross might come anytime soon.
As per current charts, the price of gold still has some space for a move toward the downside, at least till the level of $3.250. At this level, the latest move will be exhausted. A move toward the lower grounds currently is not indicated. On the opposite side, the reversal to the upside is also possible. Considering current market sensitivity to news related to trade tariffs, the volatility might continue also in the future period, especially taking into account that US-China talks are expected to start soon.
The RSI is still moving relatively high, closing the week at the level of 55. It seems that the market is still not ready to take the clear path toward the oversold market side. Moving averages of 50 and 200 days continue to move without any change, as two parallel lines with an uptrend. There is no any kind of indication that the potential cross might come anytime soon.
As per current charts, the price of gold still has some space for a move toward the downside, at least till the level of $3.250. At this level, the latest move will be exhausted. A move toward the lower grounds currently is not indicated. On the opposite side, the reversal to the upside is also possible. Considering current market sensitivity to news related to trade tariffs, the volatility might continue also in the future period, especially taking into account that US-China talks are expected to start soon.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.