On Friday, US employment data came to a large extent in compliance with expectations. After that, the price of gold rose with withdrawal of the dollar. Nevertheless, with the pressure of the high interest rate environment, the third -week decline in succession said. Analysts interpret the market and share their predictions.
Carsten Menke: Some bargaining hunts in the market are possible
Spot Gold increased by 0.85 %on Friday to $ 1,711.67 and closed the week from this level. Yellow metal, the lowest level of six weeks on Thursday touched $ 1,687.60 and fell 1.8 %to date. The US gold futures were last traded for $ 1,722.50 with an increase of 0.78 %. Julius Baer Analyst Carsten Menke makes the following assessment:
The dollar fell a little further this morning. This helps to reclaim the ground that gold lost after yesterday’s decline. After prices have fallen to $ 1,700, some bargaining huntings are also possible in the market.
Carlo Alberto de Casa: Gold has not much space for recovery
Commenting on the latest data in the market, Kinesis Money Analyst Carlo Alberto de Casa makes the following statement:
Markets have priced a major increase in interest rates. For this, gold does not have much space for recovery. Investors want to understand how much hawk the FED can be and that a solid employment data will put more pressure on the Central Bank to raise the negative interest rates for gold.
Jim Wyckoff: Gold sees some kind of short closing rally
The US Department of Labor, closely monitored employment report, announced that non -agricultural payrolls increased by 315,000 work last month. Economists who participated in the survey by Reuters predicted that their salary payroll would increase by 300,000. Kitco Metals Senior Analyst Jim Wyckoff makes the following comment:
Business figures were very close to market expectations. The market sees it as a Goldilocks number because it does not show weakness. However, it is not strong enough to activate a more aggressive Fed. Gold sees some kind of relief rally.
Piero Cingari: The downward trend in gold prices has not changed
Meanwhile Kriptokoin.comAs you have followed, the dollar index (DXY) fell around 0.1 %. This has made gold cheaper for off-shore buyers. In addition, US Treasury interest rates declined on a daily basis. Capital Analyst Piero Cingari says about the developments:
A slightly weaker US dollar and the US short -term treasure interest rates have recently provided some relief. However, this did not change the downward trend in gold prices.
Ole Hansen: For a recovery, this level needs above
Gold was late under pressure by global central banks raising interest rates to combat rising inflation. Higher interest rates increase the cost of opportunities for keeping the asset without returns. SAXO Bank Analyst Ole Hansen draws attention to the following technical level in a note:
Yellow metal on the technical front, before giving a signal of recovery, now needs to go above the trend line at the March summit of $ 1,770.
TDS: Gold will begin to melt below $ 1,675
Each decrease, the risk of capitulation of gold increases. TD Securities economists expect yellow metal to fall below $ 1,675. Economists noted that the best players in Shanghai markets continue to increase their gold despite CNY, who lost value. According to the economists, in addition to the demand for the Central Bank, these streams prevented the melting of gold in a liquidity gap in the middle of a hawk Fed narrative. From this point of view, economists make the following assessment:
However, as we approach the entrance levels of this group, the risk of surrendering prop-Shop positions that are inflated by each tick decrease in prices increases. While the technical Short signals continue to be strengthened, the downward trend below gains speed. It is possible for the risk of a breaking in a large DXY to coincide with a melting below the $ 1,675 range.
Pablo Piovano: For Gold, the door is open to further fall
Open interest to gold -futures markets, according to the preliminary data of CME Group, this time has increased by about 3.8 thousand contracts. Thus, on Thursday, he extended the rise trend for another session. Meanwhile, volume followed it. In the second session, volume rose around 25.3 thousand contracts.
Gold has fell below $ 1,700 lock support for the first time since July on Thursday. The analyst notes that daily correction is behind the increasing open interest and volume. In this context, according to the analyst, the lowest level of 2022 points to extra losses in the near term with $ 1,680 (21 July).