Gold On Watch
The current price action in gold is attracting my attention. The rally off the 1763.88 level has seen price breaking out above the bear channel top with price now sitting just shy of a test of the 1826.71 level. This is a key resistance level in gold and a beak above here will see bulls targeting 1871.04 next. With both MACD and RSI giving bullish signals here, and with the retail community around 70% short, there is plenty of room for a breakout higher if we breach that level. USD has been a little softer following last week’s FOMC and jobs data and any further downside this week would likely provide the catalyst for a push higher.
Key Data to Watch
The main data focus this week will be on the US CPI release due on Wednesday. The market is looking for headline inflation to rise to 0.5% from 0.4% prior with core to rise to 0.4% from 0.2% prior. Given the fairly muted projections here, any disappointment would likely weigh quite sharply on USD in the near term, allowing gold prices to rise.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.