Gold prices were $4,060 as of Tuesday’s American session. Investors were in wait-and-see mode as they awaited two potentially market-moving economic data releases in the US later this week. Gold peaked at an intraday high of $4,082 before receding a bit. Consequently, the XAU/USD pair was flat for the second consecutive day.
Market participants are taking a wait-and-see approach. They are awaiting key data which may determine the direction of gold prices. Indeed, the recently released advance figures for August Factory Orders are very encouraging, showing a monthly increase of 1.4%. This is particularly good news after July, which saw a decrease of 1.3%. Even with such good information, the mood regarding United States economic indicators has not improved much. This monarchic stability continues to strengthen the residence of USD stability, which lays the basis for gold’s future success.
Gold’s technical indicators show a confusing picture. Meanwhile, 20-period Simple Moving Average (SMA) has just crossed downwards, offering a dynamic resistance around $4,090. The 200-period SMA is bullishly angled upwards, hovering around $4,074.85. This recent climb from $1,600 demonstrates that underlying longer-term trends remain highly favorable for gold prices. Furthermore, the 100-period SMA is located at $4,041.52, offering useful dynamic support for the precious metal.
Though amidst all this volatility, analysts point out that gold will have to bounce back past the $4,100 mark to lure in new bullish investors. Though the Momentum indicator remains below its midline, it’s begun to push upward. This change indicates that the bearish pressure may be starting to lighten. Additionally, the Relative Strength Index (RSI) remains neutral at 52, with room for upside if bullish momentum picks up steam.
The market is particularly fixated on the next earnings report from the big five. This week, of course, all eyes are on NVIDIA as it gets ready to report its results. This highly-anticipated report has the potential to rock financial markets, particularly in the tech sector. At the same time, it can produce positive spillover effects to gold prices.