Gold weekly prediction (XAU/USD) Prices Are Tightly Balanced. The FOMC meeting and US CPI are all set to take center stage.
Gold Key Considerations
Gold Enters a Crucial Week Range-bound and Watching a Potential Breakthrough Trigger.
Maintain an eye on Chinese retail sales numbers in addition. The US CPI as well as the FOMC Meeting Both Set to Influence.
Gold yes on Fed’s rate decision and Other data next week
For the remainder of that week, the price of the yellow metal wavered around $1940 to $1970. Aas the US Federal Reserve’s continual revaluing of rate rise probability impacted on gold’s valiant effort to recover.
Both the RBA & the Bank of Canada stunned the markets last week by raising interest rates by 25 (bps) . In response to ongoing worries about rising prices. Market investors are now assessing the likelihood of a hot CPI report from the US on Tuesday. The day prior to the Fed decides on interest rates, as a result of this. A strong CPI reading might make things harder for the Fed and raise the level of concern before the meeting.
THE US CPI AND FOMC EVENT WILL RULE NEXT WEEK.
Market players will undoubtedly enjoy the busy economic schedule in the next week given the standpoint of volatility. The Fed is still divided about the best course of action. As there is certain to be heated talks over whether it will give a break or continue raising interest rates by 25 basis points. Here have been few recent indications suggesting the economy is possibly starting to slow down. Although wage increases stayed stable at 0.3% despite an increase in jobless in May.
Nevertheless, the NFP report exceeded expectations, providing the Fed doves more ammo for their summit on Wednesday. The likelihood of a raise might grow and greenback bidding might begin before the FOMC meeting. Which may hinder gold‘s effort to move towards the $2000 level if the US CPI statistics significantly beat predictions.
We currently have retail sales statistics from China, though US figures dominate the discussion coming up. These figures may also reignite recessionary worries due to the ongoing uncertainty surrounding the Chinese economy. Which might result in a surge in demand for safe haven investments. And benefit the bullion while it attempts to climb the market ladder.
All things taken into account, this past week seems to be shaping up to be a turning point for market sentiment. And the impact for the US dollar especially could have longer-term effects on the price of gold and give some guidance.
Economic Activity Schedule for Next Week
The upcoming week’s schedule is, to put it mildly, strong, with an array of Central Bank sessions setting the tone. Yet, since we are primarily concerned with US and Chinese info. We have a number of’ medium’ ranked reports on the schedule in addition to 5 ‘high’ rated ones.
These are the 5 highly-ranked risky occurrences for the economic schedule for the upcoming week that might have an impact on gold pricing:
Technical Perspective
Given the lack of direction we have seen for the duration of the week. A doji closure on the weekly graph for XAUUSD appears as being on the cards. The $1950 resistance zone becoming support region appears to be the target for the weekly candle’s conclusion. It’s possible that the low level of volatility that markets saw last week led to the lack of follow-through in numerous of the swings. It will be intriguing to observe whether identical price activity occurs when fluidity returns.
Weekly Graph of XAUUSD (Prior Week)
Source: TradingView
The lack of direction this past week becomes more apparent when looking at the daily time frame. When a bearish enveloping candle closure was swiftly followed with a bullish engulf candle closing. The price of gold is still stuck between its 100-day MA & the 50-day MA. While the latter one offering supports repeatedly last week at the $1940 mark.
The area within $1940 – $1970 is still crucial while we enter a fresh week since a breach in any direction. That might trigger an increased rally towards important either support or resistance areas. Before retrying for the psychological $2000 threshold. An upward breach from the $1970 mark would require to face its 50-day MA near $1990.
Gold prices might plunge if the $1940 protection and 100-day MA are broken to the negative. Because there isn’t much immediate protection until the $1900 area. It’s difficult to maintain a technical lean considering the recent uneven price movement. While continuing uncertainty about the FOMC and the erratic nature of the worldwide broad scenario leave us neutral while we begin what looks to be a big week.
