Gold prices have declined $ 1,800 and continue to be traded just below. In the meantime, industrial materials recovered after the decrease in concerns about the Omicron Coronavirus variant and increased the risk appetite despite the call of the World Health Organization. Developments in the markets and effects on gold prices, Kriptokoin.comWe have compiled for our readers with the evaluations and analysis of analysts.
“The panic on the Omicron variant is lightened during the weekend”
Bloomberg Commodity Spot Index, the emergence of the new COVİD-19 variant, the markets were shaken on Friday because global economic recovery would be out of the rail. However, two South African health professionals, variants so far showed light symptoms to the markets, the markets, Monday, a little calm back. While the US stock futures rise with crude oil, Nickel rose by more than 2 %and pioneered a rally among the main metals. In the Singapore markets, iron ore rose by more than 9 %.
Jinrui Futures Co. In a note on Monday, he makes the following assessment regarding the effects of the new Covid variant on the market:
The panic on the Omicron variant is lightened during the weekend. If Omicron’s death rate and severity of symptoms are limited, the effect on capital markets will be controlled.
Howie Lee: We expect a high volatility period even in industrial metals
Nevertheless, investors remained cautious after the call to be careful, saying that it would take time to evaluate the new variant of the World Health Organization. On the other hand, a series of flight ban and wider measures aimed at reducing the spread of Omicron and extensive measures have created destruction for airlines, passengers and some businesses. Oversea-Chinese Banking Corp. Economist Howie Lee expresses his expectations as follows:
In general, we expect a period of high volatility even in industrial metals. The real effect of the virus is currently unknown. Depending on how the situation develops, we can see a recovery or an ongoing sales. More clarity we expect will come after two weeks
Gold, which is a traditional safe harbor in uncertainty times, was traded for $ 1,793.88 with 0.5 %loss in the London markets, while the comedy of comesews increased by 0.4 %.
Gold prices have deleted most of the November rally and returned to the point where investors will raise their policy support faster to keep the FED under control inflation. Raphael Bostic, the President of the Central Bank of Atlanta, found the risk of the new variant on the US economy. Howie Lee from OCBC is in the following direction:
Despite the fears of virus, the market is cautious against the impact of the Fed’s increasing hawk stance on interest rates. In the short term, we expect more funds to flow to safe port assets such as gold. However, we expect the normalization of global interest rates in the long run to limit gold prices.
Important levels to be followed for gold prices
The technical Confluences detector used by market analyst Dhwani Mehta shows that gold prices will face a stubborn resistance at $ 1,799-1.800, the intersection of one-month Fibonacci and one hour of Middle Bollinger Band. The analyst says that if the second resistance collapses, Fibonacci 61.8 %can be tested at $ 1,802. Moreover, according to the analyst, the critical fibonacci of gold bulls will need extra flavor to remove 38.2 %from $ 1,807 for a week. Dhwani Mehta draws attention to the following levels in technical analysis:
The four -hour SMA200 and the one -day R1 pivot point merger $ 1.809 will challenge decline commitments. The next stop for the golden bulls is around $ 1,816, in which the previous week’s high, the rise of the previous month, and the one -month R1 pivot point. On the Flip side, a sudden decline seems to be protected by a set of intense healthy support levels of around $ 1,795.
At this point, the analyst states that one -week Fibonacci 23.6 %coincided with one -day SMA100, one -day Fibonacci 38.2 %and one -day SMA200. According to the analyst, the next demand for $ 1,789, 38.2 %of the one -month Fibonacci will be activated, and under which the soles will be opened to $ 1,780.55, the lowest level of Friday.
Technical Confluences Detector