Time to buy or wait for it?
Yesterday, by disappearing fear over faster tapering, bond yields increased, and the USD dollar eased to help the Gold regain some of its losses. And Thursday at the beginning of North American season, with US market opening, PPI data was also published, and right after that, we had Initial Jobless Claims numbers.
With increasing PPI numbers, US Dollar rose, and Gold was under pressure again to decline to its daily low at $1,741.50. Later with market adjustment, as the labor market recovering and Inflation rising, market pricing again on tapering and rate raise, highlighting the Gold safe-have mood. Besides them, the Fed officials also have started to lead the market sentiment towards early tapering and rate hikes in 2022. Both lead the Gold market again to higher prices to the same level as it started the Thursday.
Later, the market got more interested. With Gain in the Health care and Technology sectors, SP500 again printed new highs to limit the Gold market's bulls.
And finally, have to mention that uncertainty over the likely timing for policy tightening by the Fed, holding back the traders from any new decision, which ended with side movement in the market. Any further direction in the market needs more reasons and encouragement, which in overall outlook, can have more tendency to the bullish market than bearish, as market confidence is still low for long-term investments.
From the technical point of view, the price is moving flat, while the OBV trend line is also floating, but RSI at 57 remains bullish. Around 1.750, both 20 and 50 EMA lines are getting closer together, signaling possible fast and significant movement from this level, which can be down or uptrend. As fundamental data telling us, we can bet on bulls more than bears.
