Gold discovered the interest of purchasing with the Israeli-Hamas tension supporting the tendency to escape the risk. Thus, gold prices rose to $ 1,850 with a new catalyst. Meanwhile, the increase in employment in the United States remained surprisingly optimistic in September. Strong NFP data from the United States increases the likelihood of Fed’s interest rate hike. This limits the upward movement of gold.
Yellow metal stands in balance under the influence of different winds!
The tension between Israel and Hamas created negative atmosphere in the markets. This increased the interest in safe port assets. Thus, gold prices rapidly recovered and rose to around $ 1,850. Yellow metal found support from deepening geopolitical tensions. However, it only balanced the coup from the surprisingly powerful non -agricultural employment (NFP) data of September.
Dallas Federal Reserve Bank President Lorie Logan’s comments were also supportive for gold prices. Logan from the Fed made less emphasis on raising interest rates further if long -term interest rates remain high due to high maturity premiums. However, the strong increase in employment in the US increased the expectations that the FED would once again raise interest rates, as the progress in controlling inflation may slow down. Fed President Michelle Bowman said he supported the Fed’s further tightening to reduce inflation to 2 %time. In the coming period, market players will carefully monitor the US Consumer Price Index (CPI) data.
Gold Prices Technical Analysis
Kriptokoin.com ‘ As you have followed, the golden harsh decreases found a geopolitical support. However, there may be nothing changing in technical appearance. Technical Analyst Christopher Lewis evaluates the technical picture of gold through its unique style.
The “Death Cross” formation is still valid for gold!
Gold prices , H After Amas attacked Israel, the trading session on Monday began with a significant rise. It is certain that war comes to the region. Therefore, this caused people to search for security in every way they could find. Gold is of course considered a long -term security presence. Therefore, it will be interesting to see how this will result. I still think we are still in a trend of a decline. So it is a completely different question whether this will continue.
The 50 -day EMA begins to approach the 200 -day EMA and apparently we are preparing to have the form called “Death Cross .. This is of course a very negative sign. It also means that long -term traders will look at it as a technical signal to be included. If this is to be the case, I think it is only a matter of time before we see gold fall back to its previous level and possibly even below the $1,800 level. Of course, $ 1,800 is a large, round, psychologically important figure. In addition, an area that I think will be very careful because of its previous support. It is necessary to assume that there are many options in this general environment waiting to be realized.
In the coming days, the potential for fluctuations is very high.
However, if gold prices continue to rise from here, the above $ 1,900 will show some resistance. We need to keep this in mind. At this point, traders will continue to look at it through the prism of whether they can feel safe holding something other than the US dollar. Also, of course, interest rates have a great impact on what will happen next.
As a result, high interest rates are not very attractive. Because making money on paper is easier than paying storage fees for large amounts of metal. Therefore, for gold prices, the potential of fluctuation is very high in the next few days. That’s why I’m not extremely excited about getting big positions in this market. I still believe that we are still in a trend of a fall. But it was definitely a shot!
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