Analysts have determined the levels that the gold price will see next week!

Gold price jumped around $25, is this the start of a breakout? The gold market is finally on the move, driven by the Federal Reserve’s contraction policy and new jobs data. Gold rose $25 on Friday as markets began to wait for a more patient Federal Reserve. December Comex gold futures were trading at $1,818.60, up 1.40% on the day. Detail cryptocoin.com‘in.

What levels will gold see?

Federal Reserve Chairman Jerome Powell acknowledges uncertainty about inflation. “Intraday volatility for gold is up,” Everett Millman, precious metals specialist at Gainesville Coins, told Kitco News. The market is trying to digest how hawkish the Fed really is. Powell’s comments left plenty of room to undo that falconry. The central bank is more likely to be patient. “The Fed can wait longer for rate hikes or stop its QE contraction,” he said.

Gold rallied even as the US economy added an impressive 531,000 positions and the unemployment rate fell to 4.6% in October. Bart Melek, head of global strategy at TD Securities, said this was because of the unchanged participation rate, which remained at 61.6%. “This essentially means that labor force participation is still at problematically low levels and we are not close to full employment. This is why markets are not pricing in the possibility of the Fed tightening anytime soon. “It is also doubtful that the strong employment growth rate will continue over the next six months or a year.”

With the Fed’s somewhat dovish contraction statement and catchy employment data, the expected June rate hike looks unlikely. Angel: “Fed will keep monetary policy quite easy for a long time as we are not close to full employment. “The Fed’s view is that keeping the economy warm will eventually trigger more people into the workforce,” he said. Millman added that the fact that the positive employment figure did not affect gold is a sign that the markets are waiting for the central bank to be patient. “Gold, dollars, yields are moving in the same direction, which is unusual, but if the Fed fails to raise interest rates, it’s a safe-haven response,” he said.

Levels to watch

The angel said gold could see some profit of over $1,800 an ounce. “The $1,809 level is a pretty solid resistance. Once we get past that, we can go higher.” Meanwhile, the $1,786 level continues to act as support. Millman stated that if gold rises above $1,800, it could see a $50 move next week. Melek: “The key foreign markets to watch will be the dollar and bond market. If both hold steady, gold will remain in its range. If we see a lot of demand for the dollar and treasuries, in my opinion, that shows the safe-haven response that gold will follow,” he added. The market’s potential perception of the Fed as making a policy mistake also works in gold’s favor. Melek: “This will be a reaction to the economy’s inability to handle the normalization of monetary policy. This signals that the Fed has made a policy mistake. “The US dollar moving in the same direction will be a reflection of how yields and gold are moving,” he said.

key data

Next week, the big data release will be Wednesday’s inflation figure, with the market looking for the October CPI to come in at 5.8% year-on-year. “Rising housing costs, labor costs, energy costs and used car prices will likely mean that after headline inflation, it will rise above 6 percent in December and core inflation will rise above 5 percent,” said James Knightley, ING’s International Chief Economist. “The Federal Reserve assumes that inflation will fall sharply in the second and third quarters of next year, but we are cautious that labor market shortages, production bottlenecks and supply chain problems could persist into next year.”

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