On Wednesday, the US dollar rising again to remove the vapor of gold, the yellow metal had the lowest closing of two months. On Thursday, gold prices are fluctuating at the lowest levels of 10 weeks, as the rising US dollar adversely affects the demand for the dollar -priced ingot.
“It will be understood how much the Fed’s movement directs the markets”
Gold could not find a secure port connected support even after Russia stopped the supply of natural gas to Poland and Bulgaria upon the increase in tensions surrounding Ukraine.
Analysts say that the ICE US Dollar Index DXY Touching the latest levels in 2017 continues to rise against the main rivals of the dollar, continues to be an opposite wind for gold.
A stronger dollar makes commodities priced in unit more expensive for users of other currencies. The dollar rises with expectations that the Federal Reserve will move aggressively to raise interest rates and tighten the monetary policy despite the fact that inflation works at the highest level of forty years. Kinesis Money Market Analyst Rupert Rowling makes the following assessment:
Even if Russia offers a clear reason for the presence of the invasion of Ukraine for the presence of ukraine, it will be understood how much the Fed’s movement directs the markets because it could not hold over $ 1,900.
“It doesn’t take much time for the fear trade to withdraw the gold price”
In May and June, the interest rates, which were almost guaranteed by the FED and probably in July, increased the interest rates, while the lack of return of gold caused investors to fall from the eyes of the investors and facilitated a sharp decline for metal, which was more than $ 2,000, more than $ 2,000.
However, according to Rupert Rowling, $ 1,900 continues to be a very high level for gold historically, and considering the fragile state of the markets, it does not take much time for the renewed horror trade to draw the gold price once again.
According to Brian Lan, gold holds well even if it holds well, but
On Thursday, gold prices fell to the lowest level of 10 weeks, as the rising US dollar adversely affected the demand for the dollar -priced ingot. Goldsilver Central’s General Manager Brian Lan says gold holds a lot of over $ 1,900, but he was pressure from the dollar and the FED is expected to increase interest rates by 50 basis points next week.
Kriptokoin.comAs we have reported as, the dollar index (DXY) is at the highest level of five years and more prints over 103.82 will send it to the levels that have not been visited since the end of 2002. A stronger dollar makes the dollar priced gold less attractive for other currency owners.
If the decline continues according to Yeap Jun Rong, the next level is $ 1,850
Gold is very sensitive to rising US short -term interest rates and higher returns, which increases the cost of opportunities for keeping the ingredients without returns. However, gold is seen as a safe value store in economic and political crises. Brian Lan makes the following comment:
In spite of the Ukrainian conflict and rapid inflation, investors probably decided to look elsewhere because gold prices could not rise. In addition, the quarantines implemented to combat the spread of Covid-19 in China affected the demand from the best consumer.
Ig market strategist Yeap Jun Rong says in a note, if there is more decrease in gold, the next level may be $ 1,850.
According to Credit Suisse, the critical level for gold is $ 1,877
Gold has experienced a sharp decrease in the last few days and the market has now tested key support at $ 1,877. The economists in Credit Suisse say that gold should remain above this level to maintain a slight upward trend. Economists draw attention to the following levels:
In order to avoid a summit in December and maintain a upward trend in the wider side, the $ 1,877 level needs to be maintained. The first lock resistance appears at the last high levels at 1.998/2,000 dollars.
However, according to the economists, a new bull tendency should be solved only over $ 2,070/75, a wider-middle range should be resolved and the resistance will then be aligned as $ 2.280/2.300. Economists point to the following levels in the case of downward Crimea:
A fracture below $ 1,877 will complete a summit to reduce risks in the wide side range and the next support will be seen at $ 1,845/33.
Pablo Piovano: Gold is now targeting 200 days of SMA
CME Group’s latest data for gold -term trading markets, Short position on Wednesday, approximately 4 thousand contracts increased to the second -day rise, he said. The volume followed this and continued the rise trend, this time almost 15 thousand contracts increased.
According to market analyst Pablo Piovano, gold prices extended its weekly decline on Wednesday due to increasing open interest and volume and left the yellow metal vulnerable to more retreat on the short -term horizon. However, the Analyst says that the next support for the bullion has emerged from $ 1,833 today in SMA.