Gold finished calmly on Friday as investors turned to Treasurys and the US dollar for security to end a turbulent week on Wall Street, but the yellow metal posted its first weekly gain in a month. We have compiled analysts’ market comments and price predictions for our readers.
İpek Özkardeskaya: Gold’s positive momentum may be short-lived
The pullback of bond yields may give gold some breathing space. Increasing returns raise the opportunity cost of holding non-returning assets, but skeptics question whether this period will last. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, comments in a note:
Well, falling returns were the main trigger for yesterday’s gold recovery. Therefore, the positive momentum may be short-lived as the medium-term trend for US yields remains comfortably positive in anticipation of higher interest rates. The Fed has declared war on inflation and will raise interest rates. Higher rates will have a direct positive effect on returns.
Özkardeskaya maintains its bearish outlook in the medium and long term
İpek Özkardeskaya states that gold is at a turning point in the charts and 200-day volatile He says the average tested resistance around $1,837, pointing to the following levels:
If gold rises convincingly above the 200-day moving average, “we could see the rally continue towards the $1,880-1,900 range. The Russian shock in the gold supply may also support this move. I maintain my bearish outlook for gold in the medium to long term based on the expectation of higher yields as the Fed will not be able to recover from inflation fast enough.
$1.4 billion out of gold funds last week
Investors have had a brutal week for stocks, according to BofA Global Research. While escaping from stocks, $ 1.4 billion was withdrawn from gold funds last week. While a weekly World Gold Council report pointed to sharp ETF exits from the industry, “gold carries a liquidity premium, and in a “sell-everything” environment, some investors often sell whatever they can to cover redemptions or margin calls.”
With a growing appetite and need for returns, investors who are moving the liquidity curve towards long-term ‘hard-to-liquid’ assets are finding it even more important to have some gold on hand, according to the report.
TDS: Path of minimum resistance for yellow metal still at lower level
From Cryptokoin.com news As you follow, weaker economic data provided a much-needed jolt for the yellow metal. However, TD Securities strategists expect gold to still struggle for more gains. Strategists assess the current situation as follows:
Disappointments in yesterday’s economic data saw the yellow metal hold north of levels that could see CTA funds’ recently acquired net-short positions short-lived.
According to strategists, who stated that the jump in prices put an end to ETF outflows and ended the ten-day series, with the downward momentum and the negative mood prevailing among precious metals becoming more firmly established. Gold could face a high bar to continue this recovery. Strategists explain:
Fed Chairman Powell signaled his willingness to sacrifice some economic growth to rein in inflation, showing that the path of minimum resistance for gold is still further down.
Selçuk Geçer: Gram gold breaks the record this year
Market Expert who shared his views on dollar/TL, ounce gold and gram prices Selçuk Geçer first deals with the Dollar/TL rate and states that the rate has reached 15.80 very quickly. He passes, he thinks that the rate will continue its upward movement.
Says Selçuk Geçer, “It is highly probable that there will be a recession in America in the coming period,” and that this means the bottom of the crisis in the world. The market expert predicts that he does not expect gold around $1,300-1,400, and the maximum range of $1,700-1,800 will be seen. According to Selçuk Geçer, there is nothing lower than this. The market expert comments:
Gold is still a hedge against inflation. I wouldn’t be surprised if yellow metal breaks records this year. Gram gold breaks records. Because we haven’t seen the dollar effect yet. The point where the dollar effect and the ounce effect meet is where gram gold will peak. Under the maximum gram, my expectation is 1.700-1.800 TL.
According to Tuna Kaya, gold holders will rejoice in 2023
Market expert Tuna Kaya, in his newly published video, Dollar/TL He states that the exchange rate continues to rise, but intervened at the 16 level. Claiming that the CBRT continues to sell foreign currency through the back door, Tuna Kaya thinks that a new limit has been reached in Dollar/TL. The market expert says that if the level is exceeded 17, “the hell will break out” and claims that the exchange rate cannot be stopped anymore.
Tuna Kaya also touches on the ounce and Dollar/TL legs of gram gold and states that the upward movement in the dollar supports gram gold. Stating that the falling trend is broken and the critical level is 968 TL per gram, the market expert notes that if this level is exceeded, there may be a new attack towards 988 TL. Tuna Kaya’s predictions are as follows:
As long as gram gold remains at the level of 940 TL, it will touch the upper levels. If this does not happen, there may be a pullback towards 924 TL again. On the ounce side, there was a falling trend and this trend was broken. Ounce gold will continue to rise. It will rise seriously in 2023. This will delight those who hold gram gold coins.
