Gold prices continue to rise amid geopolitical risks around Ukraine and concerns that the US Federal Reserve will make a ‘policy error’ against rising inflation. However, in the view of strategists at Credit Suisse, it still has a lot of work to do to signal a significant rise. Credit Suisse strategists’ forecasts cryptocoin.com compiled for our readers.
Important technical levels for gold prices
Gold prices rose on Thursday amid news of Russia’s mortar fire in eastern Ukraine that prompted investors to turn to safe-haven assets. Spot gold prices were trading at $1,886 at the time of writing, up 0.91% on a daily basis, according to TradingView data. Evaluating the future course of the precious metal, Credit Suisse strategists draw the following route for the yellow metal:
Gold strengthened sharply and rose above short, medium and long-term averages. Right now the spotlights are firmly on the November high of $1,877. But just a weekly close here suggests a more sustained uptrend for the next test of $1,917. But above this second level adds momentum to a rally and increases the likelihood of a return to $2,075.
However, the FOMC minutes released on Wednesday were interpreted as dove by the markets, contrary to the previous hawkish expectations. This was a supportive wind for the sails of the precious metal. On the other hand, the US PPI data came in higher than expected, a sign that inflation is not temporary at all. Therefore, the pressure on the Fed to increase interest rates continues. Markets are looking for hints from the Fed, as rate hikes will have an adverse effect on non-yielding bullion. From a technical point of view, Credit Suisse points out the following levels to slow the bullish outlook:
Below $1,821 is needed to dampen the sudden bullish trend. However, a move below $1,780 needs a retest of the main price and a pullback from the lower end of the range at $1,691/76 to clear support.
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