Spot gold wobbles near the weekly highs of $1,830-35 (objective) as Fed Powell acknowledges a ‘big uptick’ in inflation

July 16, 2021 - 1 week ago
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The precious yellow metal bulls headed back to the recently challenged area of $1,830-35 on Thursday and potentially may lock in a fourth consecutive weekly gain.

On Thursday, U.S. Federal Reserve Chairman Jerome Powell delivered his second day of testimony before Congress. Powell said the Fed is confronting the challenge of how to react to the inflation “which is larger than we had expected or that anybody had expected” but reiterated that the central bank will continue to be patient before altering its monetary policies.

Viewing the technical display, with the topside holding after a brief challenge at $1,831-33, now questions the bullish assessment on the current journey due to the overbought condition from the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator.

If the bears continue to defend the $1,831-33 resistance, then it is assessed a retreat to $1,800-06 is now awaiting.

Meanwhile, the Moving Average Convergence Divergence (MACD) supports a positive signal, while the Average Directional Movement Index (ADX) trend indicator holds a positive signal (bullish).

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