With the price of gold hovering at $1796, the USD bulls are holding the reins. According to analyst Ross Burland, there could be a break in the cards this week. Detail cryptocoin.com‘in.
Predictions for gold price
Gold is stuck in a wedge formation but testing the extremes of critical support and resistance. According to the analyst, there may be a break in the cards this week. U.S. Treasuries eased as 10-year yields fell nearly 1.77% on the day, consoling the battered gold bugs a little late. Considering the key events listed in the US calendar and the European Central Bank, an important move may be on the way for gold. The US dollar will be the most likely driver for gold prices this week, and the dollar, which has already moved to new cycle highs, could continue to be bolstered as markets flirt with the idea of a 50 basis point March Fed hike.
Given the trendline support and the daily M formation, techs can argue that a major correction in the downtrend may prevail after all. The M-form is a reversal pattern with a high rate of completion where price often moves back to test at least a significant portion of the previous blow, if not all the way to the neckline of the M-form. The 38.2% Fibonacci retracement level near $1,810 is consolidating with the previous structure as shown.
On the other hand, if the US dollar depreciates again, the M’s neckline will once again be the last defense for the remainder of $1,850. Next week will be a very busy week in the US, where we see the ISM surveys and the January Non-Farm Payrolls. Meanwhile, surveys already published point to declines in both ISM indices. It will take a look at the ECB, which is in cruise control for at least the first half of 2022. Risk-off flows are expected to benefit both gold and the dollar in relation to conflict risks on Ukraine.
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