Earlier on Monday, market analyst James Hyerczyk noted that the direction of the Comex gold futures contract will be determined by the reaction of traders to $1,757.40. Gold prices widened the bounce from monthly lows on Friday, posting good gains at the beginning of the month, and more upside is likely in the very near term, according to another analyst, Pablo PIOVANO. cryptocoin.com We have compiled the gold forecasts and expectations of James Hyerczyk and Pablo PIOVANO for you.
“Gold closed this quarter low although the market is favorable“
Gold futures closed higher on Friday and were supported by the decline in US bond yields and the weak US dollar. According to analyst James Hyerczyk, the move was good enough to push gold prices higher for the week, but the market still finished the month and quarter low.
It was the report that showed U.S. inflation hit a 30-year high in August, perhaps as supply chain disruptions and extraordinarily high demand fuel continued price pressures, supporting prices, the Commerce Department reported on Friday. The core personal consumption expenditures price index, which excludes food and energy costs and is the Federal Reserve’s preferred measure of inflation, rose 0.3% for the month and 3.6% from a year ago. Monthly earnings were slightly higher than the Dow Jones forecast of 0.2% and the annual forecast of 3.5%.
Daily Swing Chart technical analysis for gold prices
Market analyst James Hyerczyk states that according to the daily swing chart, the main trend is bearish, trades up to $1,788.40 will turn the main trend upwards, but a move towards $1,721.10 will signal the resumption of the downtrend, noting the following levels:
On the downside, early support is at the 50% level at $1,757.40. Additional support levels are a pair of Fibonacci levels at $1,738.60 and $1,716.00. On the upside, potential resistance levels are at $1,765.90, $1,779.00, $1795.00, and $1,800.00 50%.
Analyst James Hyerczyk examines two scenarios, “Bearish Scenario” and “Bull Scenario” in the daily Swing Chart technical forecast.
bear scenario
The analyst says that a sustained move below $1,757.40 will indicate the presence of sellers and if this move creates enough downside momentum, the sell-off is likely to extend to the Fibonacci level at $1,738.60, pointing to the following technical levels:
Countertrend buyers could take the first test of $1,738.60. If it fails, however, wait for the sell-off to likely reach the main low at $1,721.10, then another Fibonacci level at $1,716.00.
bull scenario
James Hyerczyk states that a sustained move above $1,757.40 will indicate the presence of buyers, the initial upside target is 50% at $1,765.90 and breaking this level could trigger a rally from $1,779.00 to the 50% level. it says:
Look for sellers on the first test of $1,779.00 as the main trend is bearish. However, crossing it could trigger an acceleration to the main top at $1,788.40. A move towards $1,788.40 will push the main trend upwards at the 50% level to $1,795.00 and $1,800.00, the next key target.
Gold prices remain supported around $1,720, according to Pablo PIOVANO
Open interest on gold futures markets decreased by nearly 3.7k contracts on Friday and reached the second session in a row, taking into account flash data from CME Group. Along the same lines, the volume reversed the previous formation and decreased by about 106.7k contracts. Analyst Pablo PIOVANO says gold prices widened the bounce from monthly lows on Friday, posting good gains at the beginning of the month, suggesting that this move is amid shrinking open interest and volume, hinting at the possibility of further upside in the very near term. According to the analyst, the $1,720 region continues to support the yellow metal for the time being.
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