We continue to look at critical forecasts for gold. I wonder what the yellow metal is about this week. What levels are in expectation. Let’s see the details…
Gold data from CME Group
According to preliminary data from CME Group, there is an increase in the number of contracts. Item interest in gold futures markets increased by 311 contracts for the second session on Friday. On the other hand, the volume was fluctuating. Nearly 109,500 contracts contracted.
Gold prices had a fruitless session at the end of last week amid a small increase in open interest and a marked decline in volume. On the other hand, the precious metal has some strength supported by the $1925 level. It is also expected to continue the ongoing consolidation phase where gains appear limited to the 55-day SMA near 1985 dollars per ounce.
Will prices push this level?
Gold price receives renewal bids at $1,954, its intraday low in Europe. However, there have been headlines recently surrounding multiple banks that have lowered their growth forecasts for China. This strained the risk appetite of the market. Along the same lines, there are hawkish comments from Fed policymakers. In addition, the latest report from the US central bank to Congress also affects the price.
Richmond Fed President Thomas Barkin stresses interest rates. “Further increase in interest rates may create a more significant risk of slowdown in the economy”. says. He also added that the Fed can easily do more to slow the resilient US economy. On the other hand, according to the news of Reuters, there are interesting statements in the Monetary Policy Report presented by the Fed to the US Congress on Friday. The phrase is “Inflation in the US is well above target and the labor market remains very tight”.
On the other hand, sincere and constructive talks in the US-China struggle set a base for the gold price. Because the tension is going to decrease. On the other hand, the light calendar and holidays in the US stock and bond markets may limit the movements in Gold Prices. Still, the June PMI data, along with Fed Chairman Powell’s biennial statement, will be important for tracking clear trends.
Interest subject and prices
The Bank of England (BoE) and the Swiss National Bank (SNB) are also expected to raise interest rates by 25 basis points this week. However, the overall weak tone in the equity markets is helping the safe-haven Gold price hold just above the 100 hourly Simple Moving Average (SMA) support. There are concerns about the global economic downturn, especially in China. In addition, this situation puts pressure on the sentiments of investors. Therefore, it triggers some port flows, which will require bearish traders to be cautious.
The key level for gold is currently $1,954. When we look at Kriptokoin.com, a move below this level will pull the price to the level of $ 1,940. This is the two-week horizontal support zone. If these levels do not come, then there will be an upward price movement for gold. Accordingly, crossing the $ 1,965 zone means the psychological level of $ 2,000 for gold.
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