Bomb Predictions for Gold Prices! ‘Get Ready For These’ – Kriptokoin.com

Gold prices settled about $50 below the $2,000 level. Markets are heading for back-to-back hearings in Washington that examine the latest bank failures in the US to boost confidence in the banking industry. Meanwhile, according to the latest data from the Commodity Futures Trading Commission (CFTC), gold’s surge above $2,000 was primarily due to short closing.

Potential for a sustained rally in gold rises

However, as the world faces its biggest banking crisis since 2008, rising safe-haven interest could create sustained upward momentum, according to some analysts. The latest and most up-to-date trading data from the CFTC comes nearly a month after reporting was interrupted by a ransomware attack against ION Trading UK. According to reports, around 20% of CME Group clearing members were affected by the cyberattack.

With trading data back on track, commodity analysts are noting the growing potential for a sustained rally in gold as speculative upside interest remains well below historical levels. Ole Hansen, head of commodity strategy at Saxo Bank, comments:

Compared to the last time gold traded at $2,000 in March last year, 107k lots of net-longs are 40% below the position held until then. This highlights the possibility of more buying if the technical and fundamental outlook continues to support… However, as prices test the $2,000 resistance, investors may be reluctant to chase the market. This has proven to be a formidable hurdle.

Short squeeze is probably out of line

The CFTC’s disaggregated Commitments of Traders report for the week ended March 21 showed that money managers increased their speculative gross long positions in Comex gold futures by 6,530 contracts to 124,090. At the same time, shorts fell by 14,978 contracts to 43,861. The gold market is currently trading at 81,229 contracts at net long, up 36% from the previous week and the highest in nearly a month.

John Reade, chief market strategist for the World Gold Council, said in a comment on Twitter that gold’s ‘short squeeze’ is probably on course. Reade explains:

Gross short gold futures positions are now around the lowest levels seen in the past two years, while long positions have increased less. So, although there is room to add on the long side, there is probably limited room for more shorts from Money Managers.

Trend for gold prices depends on Fed’s policies

Commodities analysts at TD Securities note that although gold has made some solid gains over the past few weeks, the trend will depend on the Federal Reserve’s monetary policies. Analysts comment:

For the yellow metal to maintain these sustained new highs, money managers will need to see the Fed’s willingness to cut interest rates even if inflation remains far from its two percent target.

All eyes are on these meetings for gold prices

cryptocoin.comLast week, gold prices managed to retest resistance around $2,000 after Fed Chairman Jerome Powell signaled that the aggressive tightening cycle might be coming to an end. After raising interest rates by 25 basis points, Powell said the banking crisis had tightened lending conditions, and for that, the central bank had effectively done its job.

Gold prices

After testing the $2,000 level several times last week, gold pulled back and settled above $1,950 as risk sentiment improved. However, markets remain concerned about the state of the banking sector in the US. That’s why all eyes are on the two House and Senate committees, scheduled for Tuesday and Wednesday, aimed at building confidence in the banking industry and examining the regulatory failures in the collapse of Silicon Valley Bank and Signature Bank that led to it.

“We are closer to the pinnacle of central bank hawkishness”

After the collapses of Silicon Valley Bank, Signature Bank and Credit Suisse, heightened fears of financial stability triggered greater risk aversion and shifted its monetary policy outlook from rate hikes to rate cuts this year. Jeremy De Pessemier, asset allocation strategist for the World Gold Council, explains:

The bankruptcies of two US regional banks and a major Swiss bank and the rise in UK government borrowing costs last year show that the effects of monetary tightening take time to reflect on the economy, and the vulnerabilities associated with an aggressive tightening phase often emerge in unexpected places in the US. This will likely require the Fed to be cautious and strengthen our view that we may be closer to the apex of central bank hawkishness.

Gold prices

We are at the very beginning of a cycle of several years below.

Jan Van Eck, CEO of VanEck Associates, says that a situation like the banking crisis is why people have gold and precious metals investors are rewarded. Van Eck comments in a statement:

Below we are at the very beginning of a cycle of several years. I also put Bitcoin in this category. Finally, as a gold investor, you’ve been rewarded over the past few weeks. Weakness in the banking system and gold rally. That’s why you own the gold.

These will be supportive for gold prices

In a research note, De Pessemier notes that this scenario favors the gold market, especially if it will be mixed with a slight recession. It draws attention to the following points:

Gold plays a key role as a strategic long-term investment and as an anchor in a well-diversified portfolio. While investors may realize much of gold’s value in times of market stress, the structural dynamics that point to a low growth and low return environment will also be supportive for the precious metal.

Kinesis Money foreign market analyst Carlo Alberto De Casa says investors’ first reaction to the changing Fed outlook is to enter the gold market.

Contact us to be instantly informed about the last minute developments. twitterin, Facebookin and InstagramFollow and Telegram And YouTube join our channel!

Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.

Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.

Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.

Show Disclaimer


source site-3