Market analyst Dhwani Mehta says gold prices started the week right after Friday’s recovery, with $1,792 a tough walnut for gold bulls amid Fed tightening expectations. Gold sellers are looking at $1,750 as the Fed remains on the tightening path. Analyzes of Dhwani Mehta, who sets the technical levels for gold prices cryptocoin.com compiled for our readers.
“Bright metal downside seems to have eased”
The mixed US jobs report is failing to deter the Fed’s expectations for faster tapering and tightening, which could likely soften gold prices’ solid recovery from monthly lows, according to analyst Dhwani Mehta.
Amid uncertainty over Covid variant Omicron and upcoming US Inflation data, the analyst states that the downside move in the bright metal appears to have eased.
If treasury rates and the US dollar slow their recovery against a picture in light of these data, the renewed rise in gold prices may accelerate.
Important levels to watch for gold prices
The Technical Confluences Detector, which market analyst Dhwani Mehta used for analysis, shows that gold price consolidated one day’s recovery below Friday’s SMA10 at $1,785. Dhwani Mehta points out the following levels for golden bulls:
Gold bulls are waiting for a sustained break above the latter to test a strong upside barrier at 23.6% one-month Fibonacci, four-hour SMA50 and Friday’s high at $1,787. The critical resistance at $1,792 is the level that must be crossed for the golden bulls. This price zone marks the intersection of the one-day SMA 50, 100 and 200.
The analyst states that the pivot point of the one-day R2 at $1,800 will challenge more upside and on the Flip side, the Fibonacci 38.2% one-week and $1,779 one-month cross would be crucial for the buyers to defend. Dhwani Mehta concludes his analysis by pointing out the following levels:
With eyes on the $1,772 one-day Fibonacci 61.8% and 23.6% one-week Fibonacci rendezvous point, the possibility of a sharp sell-off below the latter cannot be ruled out. Further south, the November low of $1,759 is about to be tested.
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