On Tuesday, the price of gold fell slightly with the expectations that prices could re -test the $ 2,000 -dollar resistance in the short term, with the strengthening of the dollar.
Stephen Innes: Gold investors are preparing for transition to recession
Kriptokoin.comAs we have reported as the gold prices, the US traders returned from a three -day weekend, while Russia’s rapid end of Ukraine’s occupation of Ukraine, the possibility of ending on Monday rose on Monday. Stephen Innes, the executive partner of SPI Asset Management, says in a daily note:
Gold is now directly benefiting from the inflation effects of the Russian-Ukraine conflict, which is more meaningful than direct military developments. These results produced a hyperinflationist environment that caused gold investors to stock up paper and (physical metal) for the transition to the final recession.
Stephen Innes says that the testing of gold is now near the $ 2,000 level, it will be an eye -wicker for more traditional gold buyers and more momentum players, and that you have opened space to get higher in the medium term.
“Gold should exceed $ 2,000 for the rest of the week for the new wave”
While Russia was preparing a total attack on Eastern Ukraine, on Monday, the Western Ukraine city shook Lviv and killed at least six people. The Ukrainian troops resist in Mariupol, the Southeast Port city, which was largely destroyed after Russia rejected the demands of surrender. Insignia Consultants Research Director Chintan Karnani makes the following assessment:
Ukraine is the reason for the increase in gold prices. If the Ukrainian conflict continues to climb, inflation will last longer. Trade volumes were weak because most of the UK and Europe and some parts of Asia were closed due to Easter on Monday.
In the meantime, according to Chintan Karnani, gold at the technical trade level should exceed $ 2,000 in Tuesday and the rest of the week to start another wave of rising prices.
Secure Port Request and Purchases of Central Banks
Gold rose at a safe port demand even as the interest rates of the Treasury bonds were rising and the US dollar strengthened (both are typically seen as negative for precious metal). Marios Hadjikyriacos, a senior investment analyst in XM, writes in a note:
Either the safe port demand has neutralized these negative forces, or some Central Bank behaves like a whale using this opportunity for bullion purchases. The heavy sanctions imposed on the Central Bank of Russia clearly revealed that foreign exchange reserves were not as solid as gold in a crisis.
Matt Simpson: Gold has the ability to climb above $ 2,000
According to City Index’s senior market analyst Matt Simpson, the fact that $ 2,000 is a very critical level and effectively closing the horizontal closure of the day of gold means a slight hesitation to rise immediately. Analyst says:
Gold is capable of overcoming the power of the US dollar and possibly exceeding $ 2,000 in the coming weeks. The dollar has reached its highest level since April 2020, as the Federal Reserve, who wanted to restrain rising inflation, has been prepared for more than one interest rate hike of half -point.
David Meger states that he supports geopolitical risks
HIGH Ridge Futures Material Trade Director David Meger, the Russian-Ukraine War and everywhere due to inflationist pressures everywhere, the small increase in tension, increases the demand for safe port for gold, he says.
In addition, David Meger says concerns about the economic coup caused by Covid restrictions in China also supports valuable metal. Although rising inflation concerns increase the safe port attractiveness of gold, interest rate hikes to soften high prices may damage metal demand due to higher opportunity cost of handling without a return.
According to Han Tan, if real interest rates are positive, gold’s work may be difficult
The US Federal Bank is expected to increase the policy tightening rate at its next meeting with an expected 50 basis point -point increase at the May and June meetings. Exinity Chief Market Analyst Han Tan, makes the following estimates:
From a technical point of view, the spotlight may face very little resistance when gold goes to the north of $ 2,000. However, when real interest rates enter the positive area, it may be difficult to hold the head of the gold above $ 2,000.