Market analyst Dhwani Mehta notes that the gold price is struggling to extend its rise beyond the critical $1,870 supply zone, despite prolonged weakness in US Treasury yields and the dollar. According to market analyst Olumide Adesina, the road may be relatively easy, although gold looks a little tense in the near term. cryptocoin.com We have compiled the gold forecasts and analyzes of two analysts for our readers.
Important levels to watch for yellow metal
According to market analyst Dhwani Mehta, increasing calls from global central banks to take action to combat inflation is limiting the bullish momentum of gold. However, the analyst states that the gold bulls continue to benefit from the ongoing concerns and the pullback of US interest rates from the last three-week highs. Meanwhile, the analyst underlines that the Fed’s speeches and inflation concerns will continue to drive the sentiment on interest rates and gold price.
The Technical Confluences Detector used by the analyst shows that the gold price is fluctuating below the critical upper barrier of $1,870, the meeting point of the previous week’s high and the previous day’s high. The analyst states that the acceptance above the latter will start a fresh move towards $1,880 where the one-day R2 pivot point is located, and before that, the confluence of the one-day R1 and the four-hour Bollinger Band with the pivot point at $1,873 will maintain the upside. According to the analyst, if the bulls flex their muscles, then the one-month R3 pivot point at $1,884 will be tested. Dhwani Mehta continues his analysis:
Alternatively, sellers need a strong hold below $1,862, the Fibonacci 38.2% one day and the SMA5 convergence one day, to take full control. The next critical cushion is seen at $1,857, the intersection of the 61.8% one-day Fibonacci and 23.6% one-week Fibonacci. The R2 one-month pivot point at $1,850 is the last line of defense for gold optimists.
“The road may be relatively easy, although gold may look a little tense in the near future”
Market analyst Olumide Adesina states that gold bulls are once again challenging skeptics who do not believe that the bullion may be about to reclaim $1,900 after two days of losses. December gold futures on Wednesday were up almost 1% to $1,870, making it the most active contract.
On Tuesday, the yellow metal bounced off the $1,875 resistance level, found support at $1,850 at midnight on Wednesday, and ended the subsequent decline. The gold price has been fluctuating between round price levels lately. The gold bulls have also been somewhat right since the start of the week, when they appeared on softer ground, according to the analyst. Olumide Adesina comments:
Gold may look a little tense in the near future, but the road looks relatively easy. There may be several blows. Otherwise, if the breakage is real, it should be mostly flat, and there’s no reason not to believe it at the moment.
The precious metal has always been considered a hedge against inflation. According to the analyst, the gold market failed to meet that bill earlier this year, as intense speculation that the Federal Reserve would be forced to raise rates faster than expected put bullion prices under pressure, sending Treasury yields and instead the dollar up.
On the other hand, the trend has waned somewhat after Fed Chairman Jerome Powell’s assurances earlier this month that a rate hike would only come in the second half of next year. Last week, the Department of Labor reported that the Consumer Price Index, which measures prices across a wide range of products from consumer goods to gasoline, rose 6.2% through October. The CPI posted its fastest growth since November 1990, mostly due to fuel pump prices at a seven-year high.
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