Gold May Hit These Levels Next Week!

We are wondering what the gold prices will be next week. At this point, financial analysts put forward different opinions. cryptocoin.com Let’s take a look at their opinions.

Will gold prices increase?

Gold is on the move as the debt-limit deal passes Congress and the latest jobs report comes strong, analysts say. On the other hand, there is a possible recess of the Federal Reserve in June. However, he does not rule out a new rate hike this summer. The debt ceiling stalemate ended without causing too much damage, with the House and Senate passing the deal with comfortable majorities. April employment data released on Friday also delayed recession calls. It also gave the Fed the opportunity to keep interest rates higher for a longer period of time. Analysts are putting out views this week due to a few dovish Fed speakers. Accordingly, he expects the Fed to interrupt the rate hike cycle at its 13-14 June meeting. However, another rate hike towards the end of this summer is not out of the question.

Walsh Trading co-director Sean Lusk says the debt ceiling issue is over. According to him, the employment figures tell us that things are a little better. Pointing out that it will be considered inflationary as a result, Lusk states that this situation indicates that the Fed is more hawkish. Everett Millman, precious metals specialist at Gainesville Coins, said the good news is that the Fed does not want to shock the markets. Millman’s highlights are as follows.

“There is an argument that the Fed should continue to raise interest rates while economic data is strong. However, there are ongoing problems in financial systems. Therefore, I don’t understand why the Fed would go to hike rates and surprise the markets. So far, the Fed has tried to soften the impact of rate hikes with clear signals.”

Interest rate expectations

According to the CME FedWatch Tool, markets are pricing in a 70% probability of a rate pause at the June meeting. Markets will closely follow the May inflation report on June 13, just before the Fed’s rate decision. “The Fed’s outlook is to stay higher for longer,” said Michael Boutros, senior technical strategist at Forex.com. Even if the Fed jumps in in June, another 25 basis points increase is still present.” says.

Boutros said the Fed’s hesitation was prudent, but another rate hike is on the table at a later date. Analysts said the gold market is once again at risk of decline before continuing its uptrend. “The technical structure is pointing slightly higher in the near term,” Boutros said. Still, I want to look for one more low level. In the near term, there is a risk of a pullback to the $1,926-1,881 zone, which is a deeper correction.” uses the phrase. A higher support level for gold is in the $1,950-$80 range. “Gold will continue to trade sideways in this narrow gap,” Millman said. $1,925 is an important support. Then there is resistance at $1,980-2,000.” He’s emphasizing. Lusk watches on the downside at $1,940-50, citing strong stock performance and a higher US dollar risk.

Macro perspective for gold

Analysts are emboldened by the fact that gold is trading above the $1,970 per ounce level despite some key risks being removed. “Gold price levels are encouraging. Many factors that normally raise gold have disappeared. At the same time, we saw the dollar and yields rise slightly. These are headwinds for gold. I cannot say that gold is overbought.” says. Boutros states that the fundamental movement towards security in this environment keeps the gold in the upper $ 1,900 range. Boutros also said, “There is still talk of a recession. As reliance on fiat currencies wanes, people are returning to the classic investment playbook. After all, gold is part of it.” uses the phrase. It will be a quiet week for data and markets will focus on the inflation report to be released on 13 June.

James Knightley, ING’s chief international economist, states that “the Fed has entered a period of quiet prior to the decision. However, there will be no officials discussing the outlook for monetary policy next week. The data to be announced next week will not move the markets too much. Because the CPI, which will be announced next week, is important.” says. Gold markets showed signs of hesitation throughout the trading week after initially climbing towards the $2000 level. However, it shows that the $2000 level may be an area that many people pay close attention to. If we can break above the $2000 level, we can probably look to the $2050 level from now on.

Do you know where the gold went?

Alternatively, a drop below the $150 level opens up the possibility of a fairly significant sell-off, perhaps down to the 61.8% Fibonacci level. Then it even follows the 1900 dollar level. This will likely lead to a strengthening of the US dollar as the negative correlation between the dollar and gold seems to have returned again. Looking at the chart, it’s clear that we’re potentially forming a top pattern. So this is something that needs a lot of attention. Therefore, if we go below the $150 level, it will be the start of something pretty big. Looking at the long-term charts, it will be necessary to pay close attention to the $2100 level. Because it has been a great summit many times in the past. If we go above this level, it is possible that the market will go much higher. Maybe it’s likely to turn into more or less a “buy and hold” scenario.

All things being equal, a lot of choppy behavior is to be expected. But it could be a sign that it’s time to get out of this big uptrend. Therefore, it is necessary to pay close attention to the 1950 dollar level for the yellow metal.

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