2 Analysts Made Short-Term Forecasts for Gold Prices!

Gold prices stabilize around $1,809 after renewing the week’s high of $1,810 the previous day. Market analyst Anil Panchal notes that the yellow metal shows typical market inactivity on Christmas Eve. Market analyst Matías Salord says the precious metal continues to improve its outlook with a close above the 55-week simple moving average. Market analysis by Anil Panchal and Matías Salord cryptocoin.com compiled for our readers.

Developments that may be decisive for gold prices

Analyst Anil Panchal says gold bulls have been cheered by optimism about the possibility of fewer hospitalizations due to the Omicron variant lately. Also positive for gold prices was the US Food and Drug Administration’s (FDA) approval of Merck’s Covid-19 pill, one day after Pfizer approved the pill used to combat Omicron. It should be noted, however, that France’s cancellation of Merck pill orders has added to a steady rise in Omicron cases to challenge market optimism and gold prices, especially with less effect than encouraged.

Along the same lines was stronger US data, supporting US Treasury yields to renew their monthly high of around 1.5%. Among key economies, increases in the Core PCE Price Index, the Fed’s preferred gauge of inflation, not to forget Durable Goods Orders and the Michigan Consumer Confidence Index, have bolstered recent bond bears.

In addition, hesitation about US President Joe Biden’s Build Back Better (BBB) ​​plan and China’s opposition to the passage of a bill highlighting Uyghur minority issues are also pushing the risk open air and testing gold buyers, according to the analyst. is doing. On the other hand, the last words of a Fed policymaker, Christopher Waller, were hawkish, signaling rate hikes in early 2022, which challenged the metal’s further upside.

Gold technical analysis from two analysts

Gold prices rallied around the 200-SMA as the stagnant MACD and nearly overbought RSI line point to a pullback, but the lack of market movements is keeping the rebounds intact, according to Anil Panchal. The analyst draws attention to the following levels:

However, the round figure of $1,800 holds the key to the yellow metal’s fresh declines targeting the 100-SMA level around $1,785. On the other hand, it should be noted that the multiple support near $1,770 and the early December low of $1,762 could test the bears before leading the bears to the monthly low near $1,753.

Alternatively, the analyst notes that late-November highs and monthly highs near $1,814-16 are forcing short-term gold buyers in before leading them to the highs marked around $1,834 in July and September.

The yellow metal continued to improve its outlook with a close above the 55-week simple moving average, according to market analyst Matías Salord. The analyst states that the increase continues to face resistance around $1810/15 and a breakout of this area should pave the way for testing the next critical level seen in the $1,830 region. Matías Salord points to these technical support levels:

Immediate short-term support can be seen at $1,793, followed by the 20-day simple moving average at $1,784. A daily close below $1,780 could predict more losses and a possible drop to $1,750.

According to the analyst, the rise in gold is supported by the weak US dollar and the improvement in market sentiment. On the other hand, the main negative factor is US interest rates, which are moving upwards on expectations of a rate hike from the Federal Reserve next year.

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