Gold prices continued to rise after plunging to 3.5-month lows last week. Even though the dollar had reached a two-decade high, it has since weakened marginally. Investors are waiting for economic data to see if benchmark rates have fallen.. The terminal rate that the markets are pricing into the interest rate swaps curve has fallen during the past few of weeks
Market players have decreased their aggressive expectations of fed rate rises. Market participants were putting in a Fed funds rate of 3.75 percent as the eventual endpoint. The Fed’s aggressive tone dwindled a week ago as the expectation for rate rises rose to 3.0 percent.
Retail sales grew by 0.9 percent compared to predictions that they would grow by 1 percent . Retail Sales Ex-Autos climbed by 0.6 percent compared to predictions that they would grow by 0.4 percent .
Analytical Methods
Gold prices plummeted recovered and are again seeking upward resistance at the 200-day moving average at $1,836. Gold prices continue to suffer negative momentum as the 20-day moving average has just exceeded the 50-day moving average and is soon nearing the 200-day moving average. The late January 2022 lows at 1780 provide support.
The Fast Stochastic oscillator has issued a crossover buy signal, signaling an uptick in short-term momentum. The fast stochastic has moved out of the oversold area, showing growing positive momentum. The RSI bounced barely above oversold territory, a reading of 30 on the relative strength indicator.
Medium-term momentum became negative when the MACD created a crossing sell signal. This occurs as the 12-day moving average minus the 26-day moving average passes below the 9-day moving average of the MACD line. The MACD histogram is printing in negative area with a downward trajectory which signals to lower pricing.
