Weekly Precious Metals Market Outlook: Has Gold Found Support?

Weekly Precious Metals Market Outlook

3 Mar 2023
As at 12:00 pm, AEST

Gold Spot Price – AU $2728.50

Silver Spot Price – AU $31.06

Platinum Spot Price – AU $1432.75

This Week

This week, the price of gold remained under a consistent downward trend as recent macroeconomic data released from the US reinforced the Federal Reserve's commitment to maintaining strict monetary policies. GOLD/USD continued to decrease, hitting $US1,811 earlier this week, however, has since bounced back healthily to $US1842 at the time of this writing. ISM (Data on total output, growth, and inflation) results as of today for February did provide a positive spin on the US economy reporting the current level of 47.70, a contraction of -18.60% since a year ago, signifying a stronger $US is coming soon. 

More economic data coming next will be telling for either a stronger $US dollar or extending further growth for Gold.

Next week

More data around jobless claims, job growth and unemployment is due, as well as trade balances and consumer credit reporting. We’ve outlined US reporting for the coming week just here.

We’ll have exact details next Friday, to discuss how these figures could affect the price of Gold and the economy in general.

Gold Technical Analysis

The forecast is NEUTRAL for Gold in the coming week, the sentiment amongst investors remains MIXED, with the large majority taking a NET LONG position.

Moving Averages through the price of gold are giving us a positive indicator to purchase, however, some technical indicators are lacking and do suggest more pressure on the downside.

Today we’ve included a daily chart for Gold, that includes a 200-moving day average and also the relative strength index. These are two great indicators to add more transparency to the real position of Gold which can help greatly when choosing buy/sell positions. Note, Gold is still hovering above its moving average, and the relative strength index is showing a lot of upward potential.

For those that enjoy ‘looking backwards to help looking forwards’, you’ll see the tight correlation between RSI and price movement for Gold.

We’ll catch you next week for another weekly precious metals market forecast.

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.