cryptocoin.com As you can follow from the news, the gold price has risen above $ 1,800 for a short time, but it is following a fluctuating course due to the new selling pressure. Nicky Shiels, head of metals strategy at MKS Pamp Group, says the gold market has seen an output of 5 million ounces in the last two weeks.
“If gold price breaks $1,795, it can go up”
In a report on Monday, Nicky Shiels comments that “the last time longs had such little staying power was in February 2020, when positioning was close to highs, and they (wisely) sold out early before Covid.” Nicky Shiels adds:
There have been 125K oz and ~200K oz outputs in the last two days. It added some concern to any bullish outlook, especially at the end of the year when holdings were relatively unstable.
Ole Hansen, head of commodities strategy at Saxo Bank, notes that gold has failed to rise at all as rising inflation raises expectations that markets will raise interest rates more aggressively next year.
Not only do markets expect the Federal Reserve to begin tightening rates by June, but they also expect four rate hikes next year, according to the latest data from the CME FedWatch Tool. However, not all analysts give up on gold. Commodities analysts at TD Securities note that the market’s expectations for a rate hike next year have been exaggerated and this could be positive for the gold price:
With both an accelerated tapering and more than three rate hikes priced for 2022, the risk balance of gold positions is shifting upwards. If prices break north of the $1,795 level, the CTA short close could eventually catalyze higher gold prices.
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