Gold prices closed the week lower after dipping below $1,800 on Friday, driven by the falconry Federal Reserve. The prospect of the dollar continuing its course with more aggressive US interest rates on the horizon, strengthened by the sharp rise in US bond yields, dampened appetite for the yellow metal and the precious metal posted its fourth consecutive weekly decline.
Analysts have identified possible routes for gold prices
US Federal Reserve Chairman Jerome Powell said on Thursday that the struggle to rein in and contain inflation as the impact of higher interest rates is felt ” “It will hurt a little bit,” he said. As we have covered in Cryptokoin.com news, the dollar index (DXY) climbed to 20-year highs and achieved its sixth consecutive weekly gain.
A sell-off in the stock market and a fresh surge in the US dollar on Thursday provided the perfect combination to knock out gold, which dropped to $1,810 Friday morning and hit its lowest level since early February.
Currently, it is up to the yellow metal to decide whether we will see a double top formation or if the bulls are gaining strength and liquidity ahead of a fresh momentum rising for several months. Analysts make the following assessment:
The current drop in price allows us to closely monitor further developments. Gold prices fell sharply below the 200 SMA yesterday, which is often a bear factor for the instrument. A weekly consolidation below $1,830 will strengthen this signal. This will pave the way for a roughly 25% drop to the $1,350 area, which is the area of 2015-2018 highs.
According to analysts, if we see an increase in buyers in the coming hours and days, we can say that gold is in the correction. He then charts the following course for gold:
Potentially, an upside break from these levels marks the start of a new long-term growth wave with the initial impetus in 2018-2020 followed by a long-lasting broad side trend. can. In this case, a potential bullish target could be the $2,500 area.
