The gold prices rose on Tuesday with the withdrawal of the dollar among expectations for a less aggressive interest rate increase strategy than the US Federal Bank. While the gold price renews the highest level of nine months, it remains comfortably above the $ 1,917 support intersection. Analysts interpret the market and evaluate the technical appearance of gold.
“Policy signals from FOMC will be decisive for gold”
Spot Gold was traded for $ 1,936,32 with an increase of 0.3 % during the article. US gold futures increased to $ 1,937,70 with 0.5 % earnings. The dollar index fell 0.2 %and made the ingot cheaper for many buyers. Gold has been supported by the expectations that the FED reduced its speed 50 BPS in December 2022 with the expectations that it could only increase 25 BPS at its first two meetings this year’s first two meetings. Exinity Chief Market Analyst Han Tan, he makes the following assessment:
Policy signals from the upcoming FOMC meeting may either verify the latest gains of gold or to greatly disappoint bullies bulls. However, if the FED signals that markets will insist with more interest rate hikes than they estimate, this may relax some of the progress of precious metal since the beginning of the year and bring it closer to the psychological $ 1,900 limit.
“This can support the price of gold”
Some analysts point out that an expected recession can force the Fed to relax the tightening of monetary policy. The US fourth quarter GDP growth forecasts, which will be announced on Thursday, can determine the decision at the FED meeting 31 January-1 February. City Index’s senior market analyst Matt Simpson makes the following comment:
Any sign about a weaker US economy will be taken as a reason for the Fed to tighten less aggressively. This can also support the gold that includes safe port flows.
“Gold prices should overcome this barrier for a new rise trend”
Kriptokoin.comAs you have followed, the price of gold reinforces the last rise close to the highest levels of nine months. According to market analyst Dhwani Mehta, gold targets $ 1,942 and global PMIs for more rise. Analyst makes the following statement:
The focus is now shifting from the Euro region and the US to the front S&P Global Production and Service Purchasing Manager Index. If PMI reports from the euro region and from the United States give a clue that the possibility of a global recession has increased, investors can run to safe harbor dollars and trigger a sharp return from higher levels underneath.
According to the analyst, gold bulls continue to be accepted above the upper limit of a rising Kama formation, which is currently aligned at $ 1,942. Analyst says that a new rise towards the psychological level of $ 1,950 cannot be ignored in a daily candle over the latter. In this respect, the analyst draws attention to the following levels:
The lower limit of the wedge, which is currently $ 1,923, holds the key point for gold optimists. A continuous downward breakage can trigger a new decline towards $ 1,897, the lowest level of January 18th. However, the low level of the previous day, $ 1,911 and a round figure, $ 1,900, can provide relief to gold buyers for a short time.
Golden Bulls keep the reins above $ 1,917
The price of gold, in the first hour of the European session on Tuesday, increased the proposals to $ 1,940, reassuring the highest level of nine months. While doing this, the bright metal supports the general weakness in the US dollar before the monthly activity data and the hope of the future of more demand than China. According to market analyst Anil Panchal, the cautious air before the US, the euro region and the United Kingdom seems to have made a base below about $ 1,917. Analyst points to the following technical levels through Confluence Detector:
It should be noted that the downward breaking of $ 1.917 support, the gold opens the door to the south of the $ 1,900 threshold. Alternatively, the pivot point seems to be close to a week -old R1, $ 1,945, and the nearby obstacle for gold bulls. Following this, there is an empty way for buyers to progress before the April 2022 summit surrounding $ 1,966.
Confluence DetectorAre gold prices target $ 2,000?
Considering the advanced data of CME Group for the Gold -Futures Markets, the open interest rate increased by about 6.2 thousand contracts on Monday in a row on Monday. The volume followed this, and approximately 34.2 thousand contracts increased and kept the irregular activity in place for another session.
Market analyst Pablo Piovano says gold has started positively with increased open interest and volume. In contrast, it is likely to earn more and the next target level is at an important border of $ 2,000.