Gold prices were stuck in a narrow trading range on Wednesday amid investors’ demand for a safe haven fueled by the rapidly spreading Omicron Covid-19 variant, with a steady improvement in risk appetite and the entry of the year-end holidays. Analysts’ evaluations and forecasts on gold prices, cryptocoin.com compiled for our readers.
“Gold may retest $1,785 support”
The dollar index rose 0.1% to 96,585 after two days of losses, depressing gold, making it more expensive for buyers holding other currencies. Stephen Innes, managing partner of SPI Asset Management, says that while Omicron’s concerns are high, the obvious absence of bothersome symptoms has provided some relief and is a reason to switch to riskier assets.
U.S. Treasury yields held steady near one-week highs, putting pressure on gold as higher rates increase the opportunity cost of holding non-interest-paying bullion. Phillip Futures analyst Avtar Sandu comments in a note:
The gold market is expected to be volatile, with trading volume weak and key players away from the year ahead. Momentum is lacking and prices are likely to consolidate widely.
Despite the rising number of Covid-19 cases, Asian stock markets rose massively on Wednesday as the risk appetite of global investors increased towards the end of the year. In his technical analysis, market analyst Seher Dareen states that spot gold could retest the $1,785 support, showing a high chance of falling below this level and falling back to the $1,773-1,778 range.
Expert: $ 1,900 or even $ 2,000 level may be encountered in the first quarter
Gold and Money Markets Specialist Mehmet Ali Yıldırımtürk also emphasizes that investors should be careful. The expert states that short-term gold trading should be avoided and medium and long-term trading should be done:
It should be under 1 or 3 years.
Mehmet Ali Yıldırımtürk, who thinks that an ounce of gold will increase, predicts that the level of $ 1,875 can be seen in the short term. Addressing the risks taken into account by the markets, the expert also touches on the tension in Ukraine, the claims of new variations in Covid-19, and states that he can support them below. The expert predicts:
In the first quarter, $1,900 or even $2,000 may be encountered. In accordance with this, the pointer can turn even higher under the gram.
Mehmet Ali Yıldırımtürk reminds that Turkey has entered an interest rate cut trend and it is uncertain how long the interest rate cut will continue, and makes the following assessment:
When we look at the statements coming from the CBRT, there is a perception like “We have a short distance left, we will complete the interest rate cut in December”. The economy administration, on the other hand, states that it will continue to cut interest rates. This means that interest rates will be cut in January, February and March.
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