Gold markets broke the $1,800 level, the uptrend, and then the $1,750 level to the downside throughout the week. So what’s next now? Here are analyst Christopher Lewis’ comments…
What’s next for gold?
Gold faced downward momentum last week. However, according to analyst Christopher Lewis, the market will likely continue to see downward momentum. But in the short term, we’ve been sold so much that some bounce can be seen. cryptocoin.com As we have also reported, we definitely saw an attempt to stabilize on Thursday and Friday. So it will be interesting to see if we can record some sort of recovery rally.
On the other hand, if we break below the candlestick for this week, it indicates that we will go much lower. However, it is not possible to be convinced of some kind of big change until we break the top of this candlestick. The US dollar also has a great influence on this market. The analyst also points to record levels of the US dollar index. “It has to be said that the US dollar is extraordinarily strong, so we’re obviously down in the gold market,” he adds. Finally, the analyst uses the following statements:
Given enough time, I think we’ll see this as a situation where we keep going all the way down. However, if we turn and remove this candle, it is necessary to think that maybe we are getting ready to go to the $1,800 level. Breaking above this opens up the possibility of a move to the $2,000 level. But I wouldn’t expect that to happen too much. At this point, the market will likely continue to see more volatility than anything else. Keep your position size reasonable.
What is the latest situation in the market?
According to experts, gold investors preferred the safe-haven dollar to gold. It broke the critical resistance at 105.80 and rose towards 107.78 during the incessant talks about interest rate hikes by major central banks. They said that factors such as the dollar index, US inflation data, the US Fed’s speech are expected to continue to dictate gold price action in the near term.
Meanwhile, US inflation rose more than expected again in May. It disappointed the hopes that the increase in the inflationist trend was flat. The CPI rate increased by 1.0 percent compared to April, bringing headline inflation to 8.6 percent, the highest level in 40 years. cryptocoin.com As we reported, the market expectation was around 8.3 percent, with a monthly gain of only 0.7 percent. It is thought that this situation may pave the way for aggressive interest rate hikes by the US Federal Reserve.
