Gold prices have attempted to recover at the lowest level since August 11th, while struggling for modest day -day gains. According to Market Analyst Hareh Menghani, the ongoing concerns about the fate of China Evergrande Group, which was stabbed in debt, softened the appetite of investors for more risky beings. This is clearly seen without a modest retreat in the stock markets, which are seen as a key factor that directs some safe port flows to valuable metals. The analyst, however, states that the combination of factors acts as a rear wind for gold prices and limits meaningful gains, but rather leads to higher levels of new sales. The latest developments in the market and its effects on gold prices with Hareh Menghani’s analysis Kriptokoin.comWe have compiled for you.
“Planned speeches of FOMC members can provide some acceleration for gold”
According to Analyst Haresh Menghani, the FED and the Central Bank of the UK (Boe) were exhausted near Momentum $ 1,757-58, with the expectations of making an earlier interest rate hike move. On Wednesday, the FED said that if economic progress continues as expected, the moderation at the speed of asset purchases can soon be guaranteed. In addition, the Fed’s expected point graph showed an increasing tendency to increase interest rates in 2022. In a separate development, the Boe argued on Thursday that a moderate tightening may be necessary during the forecasting period in order to maintain the inflation target in the medium term in a sustainable way.
Haresh Menghani states that the pricing of the possible timing of policy tightening by the Fed and Boe is clearly seen from the ongoing increase in country bond returns, and that this prevents bulls from making aggressive operations around the unreliable yellow metal. In fact, the demonstration of the 10 -year US state bonds on Thursday noted the biggest increase in recent months and has broken the level of 1.40 %technically for the first time since July. The US bond returns rose further on Friday and helped to revive the US dollar demand, which further weakened the demand for commodities in dollars, including gold. Analyst makes the following assessment:
Gold prices are now drawn to the lower limit of the daily transaction range in the $ 1,745-45 region, and the third week continues to move on to finish in red. Market participants are now looking forward to the planned speeches of effective FOMC members, including FED President Jerome Powell. This can affect USD price dynamics with US bond returns and provide some acceleration for gold. Traders can take tips from larger market risk sensitivity to get some short -term opportunities on the last day of the week.
Gold prices technical view
According to Market Analyst Hareh Menghani, from a technical point of view, any next decrease is likely to find some support near $ 1,730-29 horizontal zones. The analyst states that the continuation of some sales will prepare the ground for deeper losses and withdraw the gold to a round figure of $ 1,700 and point to the following levels:
On the Flip side, the daily fluctuation peaks in the $ 1,757-58 area seem to be a urgent obstacle. The bulls can aim to challenge the 200-hour barrier, which is currently close to $ 1,771-72. A continuous movement that goes beyond the latter will eliminate the short -term negative tendency and pave the way for a significant valuation movement in the short term for precious metal.
