Gold price talk points
The gold price appears to be reversible ahead of the 50-day SMA ($ 1,800) as it rises back a week from a new peak ($ 1,796) and the lack of momentum to climb back from the moving average could damage the precious metal’s recent recovery from the death cross’ taking shape in August.
Gold price forecast: Thursday rally kiosks ahead of the 50-day SMA
Bullion will interrupt Thursday’s rally even if a textbook buy signal appears Relative Strength Index (RSI)and the price of gold may struggle to maintain recent highs and lows as it seems to be moving at the pace of its drum.
The price of gold shows a limited reaction US retail report weaker than expected even as more and more federal reserve officials show a greater willingness to change gears, and it appears that Federal Open Market Committee (FOMC) as President of the Boston Central Bank amends further guidance Eric Rosengren reveals it “If we get another strong labor market report, I think I would support announcing in September that we are ready to start a reduction program. “
In an interview with the CNBC in 2022, Rosengren, a voting member of the FOMC, states that he is not concerned about achieving a dual mandate for monetary policy, but the official claims that quantitative easing (SEE) program ”is now almost as effective as it used to be, as we emerged from the financial crisiss. “
As a result, Rosengren demands that the FOMC reduce its asset purchases “sooner rather than later”, and speculation about a looming change in monetary policy could undermine the recent recovery in gold prices as the “death cross” begins to emerge. August.
That being said, a low monthly decline ($ 1,682) may be a correction of a broader trend rather than a change in market behavior as 50-day ($ 1,800) and 200-day ($ 1,812) SMAs reflect a negative slope, and the lack of momentum to move moving averages will cause a decline before that. The Kansas City Fed Economic Symposium is scheduled for August 26-28 Fed officials are showing a greater willingness to change gears.
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 ($ 1,812) 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 for both 50-day high school ($ 1,800) and 200 days ($ 1,812) The SMAs show that the broader trend of bullion is skewed downwards, together formation of the “cross of death” 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, movement above $ 1,786 (38.2% expansion) area pushing towards the price of gold 50 days ($ 1,800).
- Moving over the moving average opens $ 1,816 (61.8% expansion) to $ 1,822 (50% expansion) In the areain line with the 200-day SMA ($ 1,812), the area of interest will be around $ 1837 (38.2% retracement) to $ 1847 (100% expansion).
- However, there is no momentum to push higher 50 days high school ($ 1800) may reject the price of gold Fibonacci overlap between about $ 1743 (23.6% expansion) and $ 1763 (50% retracement), with the next area of interest being about $ 1690 (61.8% retracement) to $ 1695 (61.8% expansion).
– Written by David Song, currency strategist
Follow me on Twitter at @DavidJSong