‘Decline Accelerates’ 2 Analysts Give Gold Prospects and Levels!

US President Joe Biden has nominated Federal Reserve Chairman Jerome Powell for a second term and Lael Brainard as Vice Chairman of the Board of Governors to replace Richard Clarida. Gold prices slid back to their lowest level in more than two weeks on Tuesday as the dollar rallied on bets on faster rate hikes.

Stephen Innes: Gold price drop, a ‘knee-jerk’ reaction to dollar

At the time of writing, spot gold price dropped to $1,793.8, its lowest level since November 5, while US gold futures were trading at $1,796.2, down 0.56% on the day. The dollar index (DXY), the dollar’s value against six major currencies, hit a 16-month high on Monday after Jerome Powell was nominated as Fed chief, raising the cost of bullion for buyers holding other currencies.

Stephen Innes, managing partner of SPI Asset Management, says the gold price drop is more of a “knee-jerk” response to the dollar, and comments on the Fed nominations:

There will be no sudden falconry due to the nomination. But the continuation of the current policy continues with a faster taping tabled by the authorities last week.

Harshal Barot well defended $1,780 on the downsidesays he should hang

cryptocoin.com As you may know from the news, a stronger dollar makes bullion more expensive for offshore buyers, while higher interest rates translate into the increased opportunity cost of holding non-yielding gold. Harshal Barot, senior research consultant at Metals Focus South Asia, provides the following analysis for gold on the technical side:

On the downside, $1,780 should be well defended and on the upside, we need to see a sustainable close above $1,830-1,850 for the bullish momentum to continue.

Meanwhile, investors are also on the lookout for rising Covid-19 cases, which is causing restrictions in parts of Europe. Stephen Innes states that the FOMC’s final makeover with three nominations still pending may also affect the trajectory of gold.

The resurgence of Covid-19 in Europe could cause central banks to back off from interest rate hike expectations, and there is still some need for gold in this kind of environment.

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

Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. 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, asset or service in this article.

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.


source site