Gold prices continue to recover with an increase of more than 3 %per week. According to Market Analyst Diego Colman, the decline in US treasury interest rates is likely to support interest -sensitive assets in the near term. Christopher Lewis says gold markets have a bull week. We have compiled gold forecasts and technical analysis of analysts for our readers.
With the weakening of Fed’s hawkness, gold estimates rose
Gold rose strongly in the last ten sessions after leaping cluster support from $ 1,690/$ 1,675 at the beginning of the month. Recently, it has accelerated its recovery. This week, a weak US dollar supported valuable metal. However, mostly after the Fed’s final decision and guidance, he found support from low bond rates.
After the FOMC meeting in July, President Powell’s comments were perceived as a sign of the Fed’s peak hawkness. For this reason, the 2 -year interest fell to the lowest level of one month (2.84%). Thus, the treasury interests with a sharp back. Context, Powell said that another unusual increase would be due to data. In this context, he argued that policy makers could slow down the speed of the tightening cycle in the future.
Kriptokoin.comAs you have followed from the CPI, the highest levels of forty years. However, it is possible to start rolling in the coming months due to falling commodity prices, including those in the energy sector such as oil and gasoline. This caused a sharp decrease in the expected inflation -based measures. When all of this is combined, it can help reduce the need for forced reconciliation. Analyst Diego Colman makes the following assessment:
It is possible to support the rise of gold less than the less increase in the horizon. Another catalyst that can support the gold further is the decline in US commercial activities. The US Gross Domestic Product increased the likelihood of a harsh landing in the second quarter during the April-June period.
Gold forecasts: it is possible to develop gold in this environment
The US economy is on the verge of recession according to some criteria. In this environment, the FED officials will be able to go to a pigeon at the end of this year. Analyst says that the softening of data from the macro front will direct traders to prepare for this scenario. He also records that it is likely to strengthen the charm of yellow metal in the near term.
When we look at the next week, there are several high -effective activities worth watching on the calendar, including ISM production, ISM services and labor market data. According to the analyst, all these reports are likely to slow down in economic growth. The analyst says that this is a result that can increase the risk of a regression. Therefore, he says it is possible for gold to develop in this environment.
Gold Prices Technical Analysis
Market analyst Diego Colman depicts the technical appearance of gold as follows. Gold prices fell aggressively from the 2022 summits determined at the beginning of March. However, in recent weeks, the withdrawal of 38.2 %of the 2015/2020 rally has started to recover without falling below a significant technical base in the field of $ 1,675/$ 1.690, which is in line with long -term trend line support and a few 2021 lowest levels.
If the bulls hold control of the market in the coming days, the first resistance will be at $ 1,785. Then it appears at $ 1,835. With more power, the focus slides for $ 1,880 upwards. On the other hand, if the sellers reappear and trigger the tendency of the bear, the first support to consider comes from $ 1,690/1.675. If this area is violated, we can see a movement towards $ 1,615.
GOLD PLANTS: Gold markets are having a bull week
Market analyst Christopher Lewis draws attention to the following issues in the gold technical analysis. Since we are determined to threaten the $ 1,800 level, the gold markets rose considerably during the week. The $ 1,800 level is a relatively important area based on previous support. Therefore, it should bring quite a lot of ‘market memory’. In this phenomenon, there must be many orders that are waiting to be involved and perhaps push the market back.
On the other hand, if we go back and continue to rise, the level of $ 1,800 is likely to fight strongly. If we go above the $ 1,800 level, it is possible to look at the 50 -week EMA, which is a full $ 1,832 dollars. Obviously, this would be true with a great sales in the returns. Thus, he would see that beings move against the dollar everywhere.
Position recommendations for gold
I believe that it is higher than we don’t see much noisy behavior than anything else. Therefore, when this is the case, you need to be very careful in your position dimensions. If he turns against the market, you should go out quickly. Because it will continue to be very variable forward.
The next few weeks are likely to be a little crazy. Therefore, since they seem to be running everything right now, you need to pay attention to the efficiency rather than anything. Position sizing will be very important. Due to the large amount of volatility we see in GDX, you need to make sure you don’t take much risk at any time.