Gold Weekly Forecast: Gold is heading to uncertainty.
The strengthening of the US dollar and the narrowing of the yield differential between US T-bonds have fueled the rise of XAU/USD. Furthermore, in response to Jerome Powell's comments on Friday regarding high inflation, the gold price rose to its highest level since early September at $1 815.50 before falling again shortly after.
Before this weekend's holiday festivities and tomorrow's FOMC Chairmen Powell addressed Friday at a Bank for International Settlements seminar. "Inflation will linger longer than predicted," he said, adding, "the tools available." However, with 2022 so close, there seemed to be less fear about an eventual fall down to earth.
What happened last week?
The market's defeatist attitude was exacerbated by China's weak growth figures, which boosted the dollar.
POSITIVE EARNINGS STATISTICS LIFTED large US banks' equities on Monday, helping the major Wall Street indexes gain traction. This allowed risk flows into financial markets to restrict XAU/USD losses once more, as USD weakness drove them up (and rising Treasury bond yields).
This trend persisted on Tuesday, with no significant macroeconomic reports supporting commodities like gold mining shares.
The S&P 500 Index closed at an all-time high this week, as gold rose to new weekly highs. On Thursday morning, initial unemployment claims fell below 290K for the first time since March 2020, adding to the evidence that things are looking up in the West.
With the recent interest rate hikes by the Fed in December, they have increased the opportunity to return capital through traditional lending markets while still keeping rates low enough that people won't notice much impact if any.
What About The Next week?
Investors stay on the sidelines ahead of major events, so the market is unlikely to react substantially. What will include these figures in a US economic docket on Tuesday, but they could impact the future because of how soon they come out.
While you may have had a lot going on in your brain, including fear or excitement, the tone of your output should stay nice.
We will get our first estimate of third-quarter GDP growth from the Bureau of Economic Analysis. Given that the lackluster September Nonfarm Payrolls data did not change the Fed's tapering plans. We could see another leg upward in T-bond yields in the coming weeks.
A breach above 1.75 percent for the benchmark 10-year Treasury yield would open the door to new prospects for dollar strength. If you've been struggling financially because your income isn't quite enough longer, these figures may be able to help you get back on track.
On the one hand, if the Federal Reserve delays its planned reduction in asset purchases to cool down the markets, it might generate significant investor issues.
Anything might happen in the market next week, given how unpredictable it currently is. Several pieces of news will be released that could have an impact on the direction stocks take.
Facebook's earnings report will be released on Wednesday (in which they forecast $5 billion in revenue). Amazon's quarterly results after trading hours on Thursday evening EST/Wednesday afternoon PST. They are expecting to generate more than $55 billion this time around.
Still, it depends on whether there was any disruption from last month when one of its distribution centers experienced an overflow during Prime Day, which caused some shipments to be delayed.
XAU/USD Technical Analysis
Technically market is on an uptrend in a short time frame. But along bearish candle may send the gold lower, as I have seen many times before.
Last Friday, Powell didn't send any strong message; instead, he was a bit dovish. Still, gold dropped from the rising trend line. As two weeks back, average earnings rose, and next week some big tech company will release their earnings report. So it is supposed to have good earnings reports.
So, fundamentally there is a chance that gold may drop again. from the present rate, $1780/1775 will play as a strong support zone. Breaking below $1775 gold may test the $1760/1763 price zone.
Breaking below $1760, testing the $1745/1750 price zone won't be hard. Absolutely $1745/1750 will act as solid support. And we have seen some upward correction nearly $1780 price zone again from $1745/1750.
Finally, if we see gold price breaks below $1745, we will set our last target at the $1720/1725 price zone.
On the other hand, $1808 is the immediate resistance from the present rate, and the swing area is identified at the $1715 price level. So, we may go for but if the gold price breaks above the $1715 price zone. $1730/1735 has been acting as an acritical resistance for a long time.
So, if we buy above the $1715 price zone, we must close it to nearly the $1730 price zone. If gold price can break above #1735 price, we must think for a long term buy at least almost $1900 price zone.
Before this weekend's holiday festivities and tomorrow's FOMC Chairmen Powell addressed Friday at a Bank for International Settlements seminar. "Inflation will linger longer than predicted," he said, adding, "the tools available." However, with 2022 so close, there seemed to be less fear about an eventual fall down to earth.
What happened last week?
The market's defeatist attitude was exacerbated by China's weak growth figures, which boosted the dollar.
POSITIVE EARNINGS STATISTICS LIFTED large US banks' equities on Monday, helping the major Wall Street indexes gain traction. This allowed risk flows into financial markets to restrict XAU/USD losses once more, as USD weakness drove them up (and rising Treasury bond yields).
This trend persisted on Tuesday, with no significant macroeconomic reports supporting commodities like gold mining shares.
The S&P 500 Index closed at an all-time high this week, as gold rose to new weekly highs. On Thursday morning, initial unemployment claims fell below 290K for the first time since March 2020, adding to the evidence that things are looking up in the West.
With the recent interest rate hikes by the Fed in December, they have increased the opportunity to return capital through traditional lending markets while still keeping rates low enough that people won't notice much impact if any.
What About The Next week?
Investors stay on the sidelines ahead of major events, so the market is unlikely to react substantially. What will include these figures in a US economic docket on Tuesday, but they could impact the future because of how soon they come out.
While you may have had a lot going on in your brain, including fear or excitement, the tone of your output should stay nice.
We will get our first estimate of third-quarter GDP growth from the Bureau of Economic Analysis. Given that the lackluster September Nonfarm Payrolls data did not change the Fed's tapering plans. We could see another leg upward in T-bond yields in the coming weeks.
A breach above 1.75 percent for the benchmark 10-year Treasury yield would open the door to new prospects for dollar strength. If you've been struggling financially because your income isn't quite enough longer, these figures may be able to help you get back on track.
On the one hand, if the Federal Reserve delays its planned reduction in asset purchases to cool down the markets, it might generate significant investor issues.
Anything might happen in the market next week, given how unpredictable it currently is. Several pieces of news will be released that could have an impact on the direction stocks take.
Facebook's earnings report will be released on Wednesday (in which they forecast $5 billion in revenue). Amazon's quarterly results after trading hours on Thursday evening EST/Wednesday afternoon PST. They are expecting to generate more than $55 billion this time around.
Still, it depends on whether there was any disruption from last month when one of its distribution centers experienced an overflow during Prime Day, which caused some shipments to be delayed.
XAU/USD Technical Analysis
Technically market is on an uptrend in a short time frame. But along bearish candle may send the gold lower, as I have seen many times before.
Last Friday, Powell didn't send any strong message; instead, he was a bit dovish. Still, gold dropped from the rising trend line. As two weeks back, average earnings rose, and next week some big tech company will release their earnings report. So it is supposed to have good earnings reports.
So, fundamentally there is a chance that gold may drop again. from the present rate, $1780/1775 will play as a strong support zone. Breaking below $1775 gold may test the $1760/1763 price zone.
Breaking below $1760, testing the $1745/1750 price zone won't be hard. Absolutely $1745/1750 will act as solid support. And we have seen some upward correction nearly $1780 price zone again from $1745/1750.
Finally, if we see gold price breaks below $1745, we will set our last target at the $1720/1725 price zone.
On the other hand, $1808 is the immediate resistance from the present rate, and the swing area is identified at the $1715 price level. So, we may go for but if the gold price breaks above the $1715 price zone. $1730/1735 has been acting as an acritical resistance for a long time.
So, if we buy above the $1715 price zone, we must close it to nearly the $1730 price zone. If gold price can break above #1735 price, we must think for a long term buy at least almost $1900 price zone.
Comment:
We have updated our gold chat and analysis....
Comment:
We have updated our gold target, chart, and analysis. Please check it out...
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