Gold price talk points
The gold price is trying to follow the sharp decline from the beginning of the week, although US Treasury interest rates are longer, and the precious metal may have a greater recovery in the coming days, as the relative strength index (RSI) provides a textbook buying signal.
Gold price forecast: A rebound in the Bundion will send an RSI buy signal
The price of gold does not seem to interfere with the stickiness of the US consumer price index (CPI), as the headline stays stable at 5.4% for the second month in a row and the bullion seems to be moving forward with its own drum from Kansas City The Fed’s economic symposium is scheduled for August 26-28 as it changes the course ahead March Low ($ 1,677).
Nevertheless, a slowdown in the main CPI may strengthen the central bank’s expectations of a temporary rise in inflation, as the figure narrows from 4.5% in June to 4.3%, and signs of a slowdown in price growth may reduce the attractiveness of gold. Federal Reserve officials show greater willingness to shift gears.
In turn, speculation on the threatening exit strategy of the Federation may keep the gold price on a downward trend and a “death cross” will emerge in August, with a negative rise in both areas. 50-day ($ 1809) and 200-day ($ 1815) SMA offering a tough prospect double bottom formation from the beginning of this year.
Nevertheless, a low monthly return ($ 1,682) may prove to be a correction of a broader trend rather than a change in market behavior, but recent developments in the RSI show a greater improvement in the price of gold as the oscillator bounces back from sold territory to provide a textbook buy signal.
Gold price daily schedule
Source: Trading View
- Remember, a A double bottom emerged in In March as the price of gold failed to test the low price of June 2020 ($ 1,671), with the key reversal pattern elevating the precious metal above the 200-day SEA ($ 1818) for the first time since February.
- At the same time, Relative Strength Index (RSI) was pushed into overbought territory for the first time since July 2020, as the price of gold seemed to be on track to test the highest level in January ($ 1,959), but double-bottom formation appears to have progressed as the RSI no longer follows the upward trend earlier this year.
- Negative slopes on both 50 days ($ 1809) and 200 days ($1815) The SMAs show that the broader trend of bullion remains skewed downwards, together formation of the “cross of death” was formed in August when RSI invaded the sold territory.
- However, the lack of the lowest testing momentum in March ($ 1,677) has generated textbook buying signals in RSI as the oscillator climbs back above 30, moving above Fibonacci. $ 1,743 (expansion 23.6%) to $ 1,763 (50% again) bringing back $ 1,786 (38.2% expansion) back to radar in the region.
- The next area of interest ranges from approximately $ 1,816 (61.8% expansion) to $ 1,822 (50% expansion), consistent with a 200-day SMA ($ 1,815), followed by $ 1,837 (38.2% retracement) to $ 1,847 (100% enlargement) in the region.
- Need a March break ($ 1677) open $ 1,670 (50% expansion) area, with the next area of interest being about $ 1,648 (50% expansion) to $ 1,655 (61.8% expansion).
– Written by David Song, currency strategist
Follow me on Twitter at @DavidJSong