Gold prices were initially withdrawn during the trading session on Friday. However, after Jerome Powell’s speech, gold returned, showing signs of life again. Kriptokoin.comIn the light of recent developments, we look at the direction of gold through the eyes of analysts.
“The market took a sigh of relief and began to sell the dollar”
The gold markets withdrew a little back to support during the processing session on Monday before the rise. Of course, this had much to do with Jackson Hole and Jerome Powell’s speech. Because he said it would be contracted this year. However, he also stated that we will see a very slow and restrained movement. According to analyst Christopher Lewis, the market took a sigh of relief and began to sell the dollar. Analyst says that as an extension of this, the gold markets are higher and that it makes sense to see that the situation will be like that. Christopher Lewis analyzes the resistance levels of gold:
When you look at the last movement, the size of the candle bar is relatively impressive and now seems to be starting to capture the Golden Inflation story. So I believe that the next target will probably be $ 1,830 at this point. Recently it has been a sales area. When I look forward, I believe that the market will probably look at $ 1.910.
Analyst draws attention to the correlation between gold prices and DXY, and continues his analysis as follows:
In the lower direction, you should look at the lowest levels of the week in support, and if we fall below this level, the gold may probably go to $ 1,750. Under this, the market is likely to look at $ 1,680. In general, this will act with a negative correlation with the US dollar as usual, so make sure what’s going on in the US Dollar Index.
Gold prices rose to test the basic resistance after the famous speech
Gold prices rose on Friday after the FED President Powell’s speech at Jackson Hole and closed the week with 1.7 %earnings. According to Analyst David Becker, the dollar fell as the US treasury decreases, as consumer sensitivity decreased and inflation expectations decreased. Jerome Powell signaled the markets that the FED would start to reduce a bond purchase program in 2021. In addition, while the FED President increases inflation and growth faster, it is seen that inflation wants to increase interest rates. David Becker’s technical analysis for gold prices is as follows:
The resistance is seen near the 200 -day moving average in $ 1,811, and the support is around $ 1,792 near the 10 -day moving average. Resistance on the yellow metal, fast stochastic 99 reads because the prices are excessive. It can be a harbinger of over 80 corrections with an excessive purchase trigger level. MACD (Mobile average convergence dumping) index has been a cross -purchase signal and turned to the medium -term momentum positife. This purchasing signal occurs when the MACD line (12 -day moving average minus 26 -day moving average) rises above the MACD signal line (9 -day moving average of the MACD line).
