7 Master Analysts Warn: Gold Prices Are At The Beginning Of The Year…

7 Master Analysts Warn: Gold Prices Are At The Beginning Of The Year…
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Gold prices slumped on Wednesday as the stronger dollar and higher Treasury yields weighed in after hitting a six-month high in the previous session. However, on Thursday, it showed slight signs of recovery and managed to hold above $1,800. Analysts interpret the market and price the technical view of gold.

“Corrective retracement and profit taking”

Spot gold was trading at $1,808.3 at the time of writing, up 0.25%. U.S. gold futures fell 0.1% to $1,815.8. Jim Wyckoff, senior analyst at Kitco Metals, says that after corrective pullback and taking profits, foreign markets are more bearish for metals on a daily basis. He also refers to the high dollars and yields that have an impact on this. The analyst continues, making the following statement:

I see the Fed’s aggressive hawkish monetary policy mostly reflected in prices. You’re starting to see inflation start to recede a bit. Also, China is a real wild card right now.

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“At that time, a more favorable environment for gold prices will be possible”

In the middle, the dollar index (DXY) has stabilized. Also, 10-year benchmark bond yields remained close to their highest levels in more than a month. UBS analyst Giovanni Staunovo comments:

I see Fed rate hikes as a headwind for gold in the near term. But when the US economy slows and the Fed indicates that rate hikes are over, a more favorable environment for the yellow metal is possible.

“These will be the most important factors affecting gold prices”

Kinesis Money external analyst Carlo Alberto De Casa comments on the developments as follows:

If the Covid situation in China worsens again, that would be potentially negative for gold. But it is also possible that it will push central banks to be more dovish at the same time. This will be positive for gold prices.

7 Master Analysts Warn: Gold Prices Are At The Beginning Of The Year…

Geojit Financial Services commodity research leader Hareesh V. says the performance of the dollar, inflation information, the Fed’s rate hike path, developments in China and geopolitical tensions will be the most important factors affecting gold prices in 2023.

Bears and bulls eye on this level!

Analysts point out that gold prices are still above the $1,800 level. Below this level, they say the bulls may start to lose confidence that the recent bullish breakout could continue. Gold prices continue to trade above the critical support of 1,800, closely followed by both bulls and bears. Naeem Aslam, chief market analyst at AvaTrade, comments:

This is because traders believe that price action is more likely to move on the real side as long as the price continues to trade above that price point.

7 Master Analysts Warn: Gold Prices Are At The Beginning Of The Year…

However, OANDA senior market analyst Craig Erlam says investors will likely see a correction early in the new year unless there is a dovish change in the Federal Reserve comment or some positive economic data.

Gold prices technical analysis: Bullish trend continues

Technical analyst Christopher Lewis analyzes the technical outlook of gold in the following form. While gold markets continued to see the exit of this channel in Wednesday’s trading session, it pulled back a bit. At this point, $1,800 will continue to be valuable. However, it’s pretty fair that gold continues to attract a lot of attention at this point. At this point, if it can break above the highs, it will eventually make its way to $1,875, an area that has been valuable many times over. Breaking above this level opens a much larger move, with an estimated up to $2,000.

Keep in mind that interest rates can rise depending on the situation, and gold can do one-on-one thing at a time. It is possible for the US dollar to rise as gold rises. So keep that in mind too. I know there are many experts who say that this cannot be done. However, to see how this is not without mistakes, all it takes is a painting of the 1980s.

7 Master Analysts Warn: Gold Prices Are At The Beginning Of The Year…

The 50-Day EMA is getting ready to cross. Therefore, I think it is expected that we will see this market continue at a higher level in the long run. That doesn’t mean we won’t experience mid-range pullbacks. But gold looks set to have a decent year. So, I look at these pullbacks as potential buying opportunities. Now and mid-year, it’s likely to be a fairly illiquid market. So I wouldn’t look for big moves. But I can see that the uptrend continues.

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