Gold traders got to remember that there’s a slew of potential drivers of a variety breakout on the horizon, because the latest FOMC decision and outlook, US Q1 GDP numbers, and a number of massive technology company results collide in the week. The Federal Reserve System is predicted to stay all policy measures unchanged but it’s chair Powell’s post-release remarks, especially on inflation and tapering, that require to be followed closely. On the info calendar, today’s consumer confidence numbers are going to be followed by the primary check out US Q1 GDP on Thursday and PCE – the Feds preferred measure of inflation – on Friday. US data has been strong lately and therefore the market forecast of Q1 GDP (6.5%) could also be low, sparking fears of an inflationary surge down the road. the newest Atlanta Fed GDPNow estimate for Q1 – a running estimate of GDP growth – is 8.2%, substantially above current market estimates.
US Q1 earnings season is fully flowing with tech giants including Alphabet, Apple, Facebook, Microsoft, and Twitter all reporting in the week. Any misses by these tech companies will likely dampen the present bullish equity sentiment, giving gold a haven-bid. In turn, any beats by these companies will boost positive sentiment and weigh down the valuable metal.
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The daily chart shows gold trapped between old resistance between $1,760-$1764/oz. and a cluster of recent highs topping out at $1,800/oz. the valuable metal has removed of overbought territory, while the 20-day SMA and 50-day sma crossover gives the valuable metal a positive look. it’s difficult to mention with conviction which way an opportunity may occur but the chances are that an opportunity will happen soon with all the volatile events in the week .