Gold in a minor correction with death cross scenario on busy schedule ahead

Gold is currently trading at $1,251.94/oz, with a high of $1,254.38/oz and a low of $1,250.94/oz, steady awaiting this week's key scheduled developments from geopolitical risks to nonfarm payrolls. 

Last week, gold managed a small gain in the August futures, snapping a 4-session losing streak while spot climbed from $1,248.44 early NY low to $1255.58 the high for Friday. This came about despite US government data that proved that the US economy's inflation gauge is in line with the Fed's target of 2% for May, the greenback was on the backfoot and Gold prices were able to snap a 4-session losing streak. 

US core inflation hit the Fed’s 2% target for the first time in six years. The PCE index as being the Federal Reserve’s preferred inflation gauge, climbed by 0.2%, with the rate of inflation over the past 12 months rising to 2.3% and at the fastest pace since March 2012 - (the core inflation rate hit 2% for the first time since April 2012).

The week ahead:

Analysts at Westpac picked out the main key events to watch for: "US Jun ISM national manufacturing survey (Mon), Aust May building approvals, RBA policy decision, NZ dairy auction (Tue), Aust May retail sales and international trade balance, US Independence Day holiday (Wed), US Jun ADP private payrolls, Jun ISM non-manufacturing survey, June FOMC meeting minutes (Thu), US Jun employment report, Canada Jun employment report, US tariffs on $34bn of Chinese imports take effect (Fri)."

Gold levels

The precious metal is looking to stabilise within the golden death cross technical scenario. The 50-D SMA moving average for gold prices, currently at $1,295, is falling below its longer-term 200-D SMA moving average at $1,303). 

On a continuation of the correction, resistances look to be $1,255/68, (10-D SMA is located at 1261 ) $1,276 (Jun. 20 high) ahead of $1289 (21-D SMA) and $1300 (psychological level). Support remains intact at $1250 guarding a path down to $1243 (Dec. 8 low).