The price of gold closed the week with a small change last Friday. The most active December 2021 contract on a gold -term transaction basis is currently fixed at $ 1,750,60, which means net earnings of $ 0.80 (+0.05%) per day. For the weekly appearance of gold, market analysts Gark S.wagner and Christopher Lewis’ analysis and evaluations Kriptokoin.comWe have compiled for you.
The FED admitted that inflationist prints will continue longer than predicted.
The main incident, which significantly reduced gold on Thursday, was the publication of the FOMC meeting statement and the press conference of President Jerome Powell. The explanation of when the Federal Reserve will begin the tapering points out that the Tapering will start “soon”. It is now believed in the markets that an announcement on when the Federal Reserve will start the process of reducing monthly assets will be made in November and the tapering can begin on an early date like December.
According to Market Analyst Gark S.Wagner, the news that surprised market participants and gold investors was the newly revised “dot graph olan showing the estimates of the normalization of interest rates. The latest estimates reveal that there may be an interest rate hike next year instead of 2023. The federal reserve clearly states that the time schedules starting to shrink and starting to abolish the normalization of interest rates are clearly emphasizing that the timetables have different criteria.
The federal reserve also acknowledges that inflationist pressures will probably continue longer than predicted. The Fed focuses on maximum employment rather than inflationary pressures that make up primary, bilateral powers. Inflationist pressures continued to increase, as the CPI announced this month. It points to a 0.3 %increase between July and August.
“The Fed’s interest rate of raising interest rates faster, the price of gold gave a strong decline”
The report from the Bureau of Statistics of the Labor also states that inflation has risen to 5.3 %for 12 months ending in August 2021. According to the US Office Bureau of Statistics on Friday, “Consumer Price Index (CPI-U) for all urban consumers increased by 0.5 percent in July, increased by 0.3 percent in August. In the last 12 months, all Pencils Index increased by 5.3 percent before the seasonality was free of seasonality.” Analyst Gark S.Wagner, when they will increase interest rates for the first time since the start of the pandema 20 months ago, the Central Bank’s Tapering timeline under the logic underlying, this is probably this report and makes the following assessment:
The price of gold against the potential of rapid rise than the Federal Reserve of the Federal Reserve has reacted to a strong decline. The reason for this is that higher interest rates naturally increase the opportunity to hold gold that does not bring interest earnings to the investor. Gold is currently very sensitive to lower prices and technically lock and critical. Our technical studies show a fibonacci harmony between two data sets formed from daily graphics and the other from weekly graphics.
The analyst says that the longest data set has started in October 2018, when gold was traded at $ 1,171 until the current record level reached in August last year, when gold reached the summit with 2,088 dollars, and now the lowest level of gold is matched with the 38.2 %Fibonaci correction. Gark S.Wagner continues his analysis as follows:
It also matched the 61.8 %Fibonacci correction from the daily graph. A fibonacci harmony occurs when two different data sets have the same price point for one of the key fibonacci numbers. This makes the price technically a much more critical level.
Christopher Lewis: The rise of the dollar can create reverse wind for gold price
According to market analyst Christopher Lewis, gold markets initially rose during the week, but failed in the EMA for 50 weeks, and at this point the market created an inverse hammer and therefore likely to break. Analyst points to the following technical levels for the gold price:
The level of $ 1,750 continues to provide support, and therefore, if we fall under it, then I think it is likely to fall to $ 1.680. Going below this level will pave the way for a big movement up to $ 1,500. On the other hand, if we go back to a break on the candle bar for the week, then we are likely to look at $ 1,835.
Christopher Lewis says that the US Dollar Index has a negative correlation with the gold price, and as a result, it is possible that the rise of the dollar will create the opposite wind for the gold price. On the other hand, if the market sees that the US dollar has fallen, it will rise to the gold markets that go to EMA for the 50 -week EMA, and go on it will add more momentum to this market and reveal the possibility of a break. Christopher Lewis makes the following evaluations:
The interest rates in the United States, of course, have a great impact on the gold price. Because increasing rates are a murderer for gold price. However, the market will probably continue to see that the 10 -year return correlation has entered into force. Nevertheless, this is definitely a market that seems ready to fall. For this reason, falling under the candle bar not only compresses this market, but also maybe a little aggressive.