After a week of continuous and strong declines, the gold price has shown signs of stabilizing and slightly increasing. This week, investors are focusing on the PCE data—the Federal Reserve’s preferred inflation measure—which will be released on Friday. This data will have a direct impact on the price of gold this week.
According to calculations based on the Technical Convergence method, the gold price will move sideways and slightly increase to the resistance convergence zone of 2356-2370. At that point, the price will continue to decrease following the Million-dollar pattern down to the support levels below the price line. This is further reinforced by the analysis of the strength of the dollar.
However, with a series of other important news coming this week, such as Unemployment Claims, Prelim GDP, etc., we need to adhere to the simplest risk management methods, such as reducing the volume when participating in the market, among other methods. This not only helps us develop good habits but also ensures that the profits generated are always proud and sustainable.
Wishing all investors smart and effective investment strategies. Stay tuned for the next gold price update!
By. Pham Thanh Bien
