Gold prices rose on Friday, amid weakening dollar. However, the precious metal continues its third consecutive weekly decline as it faces pressure from the US Federal Reserve’s (FED) aggressive rate hike expectations. Meanwhile, analysts of the famous bank Credit Suisse shared their expectations for the precious metal and determined the levels to watch. Here are the details…
Credit Suisse: Gold prices could test $1,836 support
Gold broke price support at $1,877. According to the report by Credit Suisse economists, XAUUSD, that is, the gold and US dollar parity, shows the nine-month uptrend and the 200-day moving average (DMA); So it is at risk to test the $1,836 and $1,826 support levels. A break above $1,998 is needed to revisit an upside trend. Credit Suisse analysts use the following statements in their new report:
We expect a drop to the uptrend and 200-DMA from last August at $1,836/26, but new buyers are expected here. However, a weekly close below $1,826 will warn of a retest of crucial long-term support at $1,691/77. A break above $1,998 is needed to retest the record highs of $2,070/75 and revisit an uptrend.
What is the latest situation in gold price?
Spot gold rose 0.5 percent last day to $1,884 an ounce and continued to recover after falling to a two-month low. U.S. gold futures also gained 0.5 percent to trade at $1,887.80 an ounce. Meanwhile, the dollar index fell 0.3 percent after hitting a 20-year high, making gold cheaper for overseas buyers.
However, as we reported on Kriptokoin.com , limiting the rise of gold bullion, the US Treasury yield strengthened close to the key 3 percent level, with the perception that stronger-than-expected employment data justified larger rate hikes. Meanwhile, gram gold has managed to rise above 900 lira.
