Money Street News
  • Please enable News ticker from the theme option Panel to display Post

Key economic events and gold’s rally: What to watch this week

Ahead of this week, there are a few potentially market-moving data releases and events that need to be monitored. Fed chair Jerome Powell’s two-day testimony starts on Wednesday, the same day as noteworthy US ADP and Jolts data hits the screen. To end the week, the monthly US Jobs Report (NFP) is released at 13:30 UK and will guide the dollar going into the weekend.

This move lower of US bond yields gave gold a push higher, helping it push through prior levels of resistance and back to highs last seen in December last year. The first of these resistance levels, $2,070/0z. will now start to act as support ahead of $2,043/oz. There is little in the way of resistance between the current spot price and the December 4th spike high at $2,146.8/oz. apart from one technical indicator that is flashing a heavily overbought signal.

Gold’s overbought signal and trader sentiment

The CCI indicator, at the bottom of the chart, is now showing an extreme reading over 250, and this is likely to temper any short-term move higher. In the medium- to longer-term, when this reading begins to normalise, then gold is likely to retest the record high seen at the end of last year.

Retail trader data show 44.64% of traders are net-long with the ratio of traders short to long at 1.24 to 1.The number of traders net-long is 5.91% higher than yesterday, and 19.58% lower than last week, while the number of traders net-short is 8.05%, higher than yesterday, and 44.53% higher than last week.
Gold daily price chart

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *


Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

No, thank you. I do not want.
100% secure your website.