Weekly Gold Technical Analysis: Is Gold on The Verge of Breaking a NEW Record High Next Week?
The US500 and ASX200 share markets have enjoyed their fourth consecutive week of gains, but despite the positive trend, the US economic data is looking shaky. The Consumer Price Index (CPI) for March was lower than predicted at 0.1%, while core CPI rose by 0.4%. Although the year-on-year CPI measurements still show inflation between 5-6%, the current monthly consumer spending is rapidly decreasing. FED economists recently announced that the US should expect a mild recession this year, contributing to expectations of a significant drop in earnings per share for companies.
Meanwhile, Gold prices have been on an upward trajectory this week, with the precious metal trading above US$2,040 (AUD $3,008) as investors await US Retail Sales data. Softened US Consumer Price Index (CPI) joined the heavily decelerated Producer Price Index (PPI), trimming consumer inflation expectations dramatically, leading to a decline in the US Treasury bond yields, benefitting the Gold price. Additionally, looming recession risks have contributed to the positive move, with the International Monetary Fund (IMF) trimming its 2023 global growth outlook on Tuesday.
Bets for a rate-hike pause by the Federal Reserve (Fed) are benefitting the Gold price, with the March Federal Open Market Committee (FOMC) showing that several policymakers considered pausing interest rate increases after the failure of two regional banks. A Weaker US Dollar further underpins the Gold price, and growing acceptance that the Fed will pause its monetary tightening after hiking one last time next month and possibly starting to cut rates during the second half of the year continues to weigh on the US Dollar.
Technical Buying Indicator for Gold Price Remains Bullish
Moving into next week, the technical buying indicator for Gold price remains bullish.
The buying indicator for the price of gold is recommending a “Strong Buy” signal over the next week. We could even witness a new record high moving into next week, taking the 13-month record of US$2070 for a good run. The moving averages for the last 10 and 20 periods also suggest that the trend for gold is positive. The Relative Strength Index (RSI) is showing that the market is bullish, with no signs of it slowing down.
We’ve included a weekly Gold and Silver chart for you today to show clearly show Silver’s strength over the last month.
Disclaimer
Please note that past performance does not guarantee future results. This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards.
Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.