Gold Price May Retreat To These Levels During The Week!

Gold price is easing intraday losses during its three-day downtrend to around $1,815, down 0.10% in one day during Monday’s Asian session. In doing so, precious metal prices are reacting to the market’s negative mood amid fears of the coronavirus and the Fed’s rate hike.

Fed’s interest rate hike worries become key for gold price

cryptocoin.com As we reported, concerns about the Fed’s rate hike were further strengthened by the statements of San Francisco Federal Reserve Bank President Mary Daly and New York Fed President John Williams on Friday. The absence of key data/events from the US for the day highlights China’s GDP and other key figures for the immediate direction. First of all, virus updates and Fed rate hike concerns are key points.

Gold price sat near Friday’s close in Monday’s open and is expected to start the week calmly today with only Chinese data. Markets reacted defensively to disappointing US economic data for December, which could also put pressure on Asian stock markets. The dollar will be further supported, especially if China is disappointed in today’s numbers.

While US Retail Sales decreased by 1.9% compared to the previous month, sales of the control group decreased by 3.1% compared to the previous month. “Data shows that the highest inflation in the last 40 years is impacting consumer behavior and this could extend into the first quarter, when the end of child tax credits will also gain weight,” ANZ Bank analysts comment.

Manufacturing was also disappointed, down 0.3% month-on-month and Industrial Production fell 0.1% month-on-month. “The weakness in production was due to the 1.3% drop in auto vehicles and parts,” ANZ Bank analysts said.

“CTA trend stream looks supportive enough to boost gold”

Counterintuitively, developments are supporting the dollar and putting pressure on the gold price. Overall, despite weak data, market expectations suggest a Fed rate hike in March is imminent. For gold in particular, Shanghai traders are expanding their gold positions due to the rise in infections across China, analysts at TD Securities say:

Along with an increase in CTA trend follower positions, this flow seems supportive enough to push gold prices against a hawkish Fed narrative. While not wide, leveraged shorts remained bloated, leaving traders vulnerable to a position squeeze. However, the ongoing CTA buying program may soon run out, leaving less avenue for speculative positions to increase.

gold price

Also, according to analysts, the overall net gold position in China has increased towards its average value over the past 12 months, which dampens the momentum for further purchases. Analysts say that less upside movements in the coming weeks may leave gold prices vulnerable to consolidation, given that markets will eventually focus heavily on the Fed’s exit.

Gold price technical view

For the opening, a retest of the $1,821 structure could be a correction on the cards, according to market analyst Ross J Burland. Whatever the case, the analyst states that the outlook shows a bearish trend on the charts and draws attention to the following levels:

A move to the depths of $1,800 is expected to meet the previous low of $1,801 as per the drawing on the 4-hour chart below. However, a break above $1,829 and a close at $1,830 will negate the bearish outlook.

gold price

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, asset or service 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-2