Gold Predictions from 3 Analysts: These Levels Next Week!

“Bad news is good news for gold” but why has the price stuck? Analysts are evaluating the stable price levels of gold as gold failed to rally despite the disappointing US September jobs report. For details of the news Cryptokoin.com’Don’t leave.

Good news for gold prices

The US September jobs report surprised on the downside with only 194,000 positions added against the expected 500,000. That’s a huge understatement, given that Federal Reserve Chairman Jerome Powell needs a “pretty good report” to start tapering by November. Frank Cholly, senior market strategist at RJO Futures, said, “We’ve had a huge loss in job numbers. The bad news is good news for gold. “This is because the market believes the Fed cannot be so aggressive with the timeline of contraction or future rate hikes next month,” he said. In response to the employment report, gold jumped to $20 to $1,781. However, gold gave up all its gains as US Treasury yields began to climb.

Everett Millman, precious metals specialist at Gainesville Coins, says:

As in past months, gold prices were very sensitive to economic data. Two areas that have driven safe haven demand away from gold have been the bond and crypto markets. While economic data deteriorates, gold may be in a change in mood. Economic data seems to be falling. Inflation is still quite high. All of this is pretty gold positive. It looks like this train isn’t going to stop rolling despite Powell, especially since we’re seeing inflation outside of the US right now.

Will Powell maintain his narrowing stance in November?

The critical question for gold is whether Fed Chairman Jerome Powell will continue to contract in November. A few weeks ago, Powell said the tapering test was “all met.” But is this still the case? According to Millman:

Powell cornered himself with these comments. Considering the employment figures, it seems unlikely that a contraction will come in November. And if the data continues to be bad, they can’t raise interest rates at will. The Fed is unable to maintain its timeline and is forced to continue supporting markets longer than expected, which does not indicate a strong economy and will increase safe-haven demand for gold.

Cholly said the gold risk here is that the Fed has chosen to stick to the timeline that has been thinned for transparency reasons: “Gold could continue to move sideways. Even if we have a large job loss, yields are still rising. The treasury market tells us the Fed will stick to its timelines. The Fed is concerned about being transparent. “They’ve given us a signal that they’re going to shrink, they’re going to be inclined to follow along,” he said.

Important gold levels to watch

Cholly stated that gold will fail to create bullish momentum unless it closes above $1,781/ounce Friday’s high. “It’s all about levels on a chart. This morning, December gold hit $1,782. Coincidentally, the 50-day moving average of $1,781. If the market can manage a close at $1,781 or higher, it could be friendly to gold bulls. “We can start talking about $1,800,” he said.

For now, however, the market has rejected this level and gold is trading sideways at $1,758.60 an ounce for the day. Meanwhile, the $1,720 level continues to act as support, Cholly added. Millman said he does not rule out a move to $1,800 next week if gold gains safe-haven interest. Millman watches for additional comments from Fed members to clarify what September employment numbers mean for the central bank.

Data to monitor

One of the key releases to watch for next week will be Wednesday’s FOMC meeting minutes from September. “Gold will react if there is any adjustment in the language surrounding the contraction,” Millman said. “If it looks like the Fed is trying to pull back that timeline,” he said. Also on Wednesday, markets will watch the US CPI report with market consensus calls that predict annual inflation to stay at 5.3% in September. There are unemployment claims and PPI reports on Thursday. On Friday, markets will look at the latest retail sales figures.

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, assets or services 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