According to the market analyst Ross J Burland, who says “Gold is held by critical support in the daily graph ,, this week’s important events, bulls and bears can move the needle while fighting. In addition, the analyst thinks that gold is ready to experience more losses with the Fed’s hawk stance.
“Increased interest rates are imprisoning on gold prices”
The bright metal is struggling to extend Friday losses around the lowest level of six weeks, as the market players are divided into the next moves of the Fed between the lack of a light calendar and the absence of one week of Chinese trader. The fact that the US Senate is ready to impose a law to impose sanctions on Russia is also challenging the market. Analyst makes the following assessment with these developments:
Nevertheless, more powerful US treasury interest and moderate stock futures reflect the atmosphere of escape from risk and create downward pressure on gold prices.
However, the analyst states that the US Dollar Index (DXY) continues to retreat on Friday and puts a base under gold prices and makes the following comment:
A light calendar and a cautious mood can test gold trader before the important US employment report on Friday. However, there are very few places for buyers to enter.
Ross J Burland: Yellow Metal technically stands on a thin ice
Kriptokoin.comAs we have reported, the price of gold closed the week ahead and corrected the lowest levels of the decline tendency starting from last week’s $ 1.780, and was moving towards the support of the previous day close to $ 1,800. According to the analyst, Yellow Metal, which is traded around $ 1,791 on Friday, is technically on a fine ice because it is balanced with the support of the critical daily trend line for the opening.
The risk appetite healed on Friday. The world stocks made rally with a positive focus and gladly meeting the gains of the company, which was a positive focus and welcomed the geopolitical turmoil and the concerns of the federal reserve. Analyst says that economic data helps to alleviate inflation concerns that cause the US dollar to remain consolidated and to keep US interest backgrounds.
The result was important, because on Wednesday, the federal reserve said it would also increase rates in March while confirming their plans to terminate bond purchases. According to the analyst, this will pave the way for a significant decline in assets by keeping markets tense, pressure on stocks and supporting the US dollar.
It can be a critical week for gold!
“FED’s hawk tone reduces the risk appetite in the market, TD said TD Securities analysts, despite the increasing risk of conflict in Ukraine, said that safe port flows are under pressure and leaving very little ways for investors to take refuge. Analysts say that after the gold has recorded the biggest weekly loss since August, the following:
We expect the valuable metals complex to struggle to attract capital in this context.
In the meantime, the US ranking of US events containing non -agricultural employment data and US ISM figures can be a critical week for gold this week. TD Securities analysts state that more regional survey for January will be published at the beginning of this week, so expectations may change, but the already published surveys point to decreases in both ISM indexes and explain its effect as follows:
Slimming is likely to be explained by temporary effects from Omicron, but the decrease in the increase in financial incentives probably causes some slowing.
Analysts in relation to employment data make the following assessment: recovery in employment was temporarily interrupted due to an increase in Covid cases. Most of the employees who had to beolated probably continued to receive salaries, and therefore stayed in the payrolls, but most of them were probably not paid. The report will probably show the ongoing power in wage increases. The report will include the annual revision of the data.
Gold Price Technical Analysis
Analysts on Anz Bank argue that it seems vulnerable to more damages after being broken under the basic moving averages of gold and traded below $ 1,800.
However, according to the market analyst Ross J Burland, who analyzes the graph of the week, as shown above, the price may be on the threshold of an important upward correction for the next sessions, given that the price has entered a support wall of around $ 1,780. The analyst says that 21 and 50 -day EMAs corresponds to an average return of 38.2 %and an average return of 50 %, which can withdraw the price to $ 1,810/1.820.