Gold prices made a slight leap on Monday. However, the market continues to remain cautious. The focus of investors is focused on US inflation data. The data is very important as it may affect the size of the Fed’s next interest rate hike. Analysts interpret the market and evaluate technical levels.
“There are some leverages on gold that reduce downward pressure on gold”
Spot Gold was traded for $ 1,726.8 with a gain of 0.64 %. US gold futures increased by 0.59 %to $ 1,738.8. ACY Securities Chief economist Clifford Bennett makes the following assessment:
There are some permanent general leverages that reduce the downward pressure on gold. However, this week’s inflation figure is possible to provide some relief. Another indicator that inflation may have peak may be encouraging for the gold market. The Fed will continue to increase whatever. However, after the recent sharp decreases, it is possible to take it up again.
“Spot Gold is prone to rise to $ 1,729”
Kriptokoin.comAs you have followed from the US Consumer Price Index (CPI), increased by 8.5 %in July. August CPI, which will be announced on Tuesday, is expected to increase by 8.1 %compared to this.
Fed officials ended the period of announcement on Friday before the Central Bank’s policy meeting on September 20-21. Authorities made strong calls for another excessive interest rate hike to combat high inflation.
Markets are largely expected to raise the Fed to raise 75 basis points this month. Meanwhile, the European Central Bank policy makers increased key interest rates to 2 %. According to Reuters Technical Analyst Wang Tao, Spot is tended to break the resistance at $ 1,720. After that, he will try to rise to $ 1,729.
Technical Analysis: Gold sellers target $ 1,690
Market analyst Anil Panchal analyzes the technical appearance of gold as follows. The open upward support trend line from the last Wednesday, currently directing the price of gold around $ 1,720, currently directing the price of gold to $ 1,700.
However, from July 21, an upward -curved support line near $ 1,690 will probably challenge the golden bears to $ 1,680, the lowest level of the year.
In the meantime, gold buyers managed to cross the close barrier of $ 1,720. However, they have a rugged path to return. In addition, a decreasing resistance line from mid-August comes before $ 1,724 and $ 1,727, respectively to limit the short-term rise of the metal, and around $ 1,727. Following this, the weekly resistance line and $ 1,731 and $ 1,751 will attract the attention of the 200-SMA market.
“Consolidation seems likely”
Open interest to gold -futures markets, according to the preliminary data of CME Group, this time only 270 contractors increased. Thus, on Friday, it rose to the second session in a row. Instead, volume expanded the ongoing fluctuation. In this direction, it was narrowed with approximately 26.8 thousand agreements.
Gold prices re -tested the upper limit of the range around $ 1,730 on Friday. However, he then distributed some of these gains. The movement was accompanied by a small increase in open interest and a significant retreat in volume. According to market analyst Pablo Piovano, it is possible to allow some extra earnings in the near term, although it is always in the theme due to the dominant range. Meanwhile, the $ 1,680 zone is still a good strife.
