24K99-spot gold surged nearly $60 last weekStrippokerfunIt closed around $2360 an ounce. Gold traded around $2355 an ounce in Asian trading on Monday. Valeria Bednarik, chief analyst at FXStreet, wrote an article to analyze the technical outlook for gold prices this week.
Bednarik pointed out that gold is bullish, and gold prices may challenge 2431.Strippokerfun.40 US dollars per ounce, a record high.
Gold prices hovered between $2300 and $2330 an ounce for most of last week. Gold prices exploded last Thursday and Friday, closing at around $2360 an ounce as market participants scrambled to sell dollars amid renewed hopes of a Fed rate cut.
Lukman Otunuga, market analysis manager of FXTM Fortune, saidStrippokerfunWeak US economic data have boosted demand for precious metals, which supports the view that the US will cut interest rates this year. "
This week the market focused on US inflation data.
Looking ahead to this week, the focus will be on US inflation-related data, Bednarik said. The US Consumer Price Index (CPI) is expected to rise by 0% in April compared with the previous month.Strippokerfun.3%, down from 0.4% in March. The US producer price index (PPI) is expected to rise 0.2% in April from the previous month, the same increase as the previous month. These figures tend to have a significant impact on the dollar. This week's US macroeconomic calendar will also include US retail sales data for April.
Equally important, Bednarik added, China will release a series of data on Friday, including retail sales, industrial production and house price indices for April.
Analysis on the Technical Prospect of Gold this week
'Last week, gold recovered most of its losses in the previous two weeks and is now trading in the $2360 / oz area, 'Bednarik wrote. From a technical point of view, the weekly chart will regain its dominance, given that technical indicators have resumed their rise after correcting extreme overbuying. In addition, the firmly bullish 20-week simple moving average (SMA) accelerated well below current gold levels, while the longer-term moving average also gained upward traction below the shorter-term moving average.
Bednarik points out that the reasons for bullish are also clear on the daily chart. Gold is trading above the directionless 20-day SMA, which provides dynamic support around $2035 an ounce. At the same time, 100-day SMA and 200-day SMA accelerated the pace of bullish, both of which are more than $200 below current gold levels, indicating that the consolidation phase of gold prices is over. Finally, the momentum index crossed the midline, while the relative strength index (RSI) rose to around 61, reflecting increased buying interest.
In terms of specific support and resistance, Bednarik said gold should initially find resistance around $2395 / oz and then around $2431 / oz. If we break through the latter, the rally could extend to $2450 / oz and eventually reach the $2500 / oz mark.
On the other hand, gold prices can find support around $2330 / oz, while stronger buying interest may limit the downward price of gold around $2300 / oz.
At 12:23 Beijing time, spot gold was at US $2355.31 / oz.