Analyst Gave Levels That Gold Price Will See!

According to market analyst Anil Panchal, gold prices will end the week on a higher note as they have held steady around $1,800 so far this Friday. The precious metal hit $1,810.47 in Thursday’s US session following the sell-off of the US dollar against major currencies. cryptocoin.com As we have reported, US Gross Domestic Product (GDP) came in at 2% in the third quarter, below market expectations of 2.7%. The US Dollar Index (DXY) fell below 93.50 after disappointing growth. The pessimistic data supported speculation that other central banks could outpace the Fed in normalizing monetary policy.

“Gold may remain under pressure ahead of key US inflation figures”

On the other hand, the latest report of the World Gold Council (WGC) states that despite the 7% decline in global demand, gold demand in India increased by 47% in the July-September quarter to over 139 tons. It is worth remembering that India is the second largest gold consumer after China. According to the analyst, gold is looking for new clues after two days of gains and seesaws around $1,800 early Friday, and even so, the yellow meta remains on its three-week path. The analyst makes the following assessment:

Gold bulls refreshed the weekly high the previous day after the US dollar slumped due to US third-quarter GDP figures and the European Central Bank’s (ECB) failed attempt to tame the euro.

The analyst believes that weaker GDP growth is forcing the Fed to slow the rush for monetary policy normalization, and the belief that the ECB will begin to cut monthly bond purchases and the PEPP (Pandemic Emergency Purchase Program) will end next March will boost the euro and lower the dollar. states that he did. The ECB did not change its monetary policy as expected, leaving the refinancing rate at 0.0%.

According to Anil Panchal, gold may remain under pressure ahead of key US inflation figures, given the risk-aversion mood and the absence of US dollar selling. However, the Core Personal Consumption Expenditure (PCE)-September Price Index is expected to fall from 0.3% to 0.2% on a monthly basis. The analyst interprets this situation as follows:

The same will raise hopes that the Fed will turn down the easy money a little more slowly, which could put additional downward pressure on the dollar to meet forecasts and help gold prices make the latest bullish move.

Technical analysis: Overall, yellow metal remains on uptrend

The bullion is not overbought but is in the foreground within a two-week ascending wedge formation amid tighter RSI conditions. Anil Panchal continues his analysis:

The 50-SMA added strength to the support line near $1,788 of the wedge, although gold buyers were repeatedly rejected by the 78.6% Fibonacci retracement (Fibo) of the September drop near $1,810. Even if the price manages to break the $1,810 barrier, the upper line of the stated wedge near $1,814 and the previous month’s high of $1,834 will be hard-to-break resistances for gold bulls.

Otherwise, the analyst states that a downside break of the $1,788 support confluence will confirm the bearish chart pattern and target the September low of $1,721, pointing to the following levels:

During the decline, $1,770 and $1,745 could offer multiple supports to test the gold sellers. Overall, gold remains on an upside trajectory, but the bulls have a bumpy road ahead.

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