Gold Price Predictions from 7 Professional Analysts: In January… – Kriptokoin.com

The gold price remained unchanged on Wednesday. However, the key held above $1,800 amid expectations of a slowdown in US rate hikes. However, the rise in the dollar limited further increases in the inefficient bright metal. Analysts interpret the market and share their forecasts.

“We believe the horizontal to upward trend will remain intact”

Spot gold held steady at $1,817.95 on Thursday. US gold futures remained unchanged at $1,825.40 from the previous session. cryptocoin.comAs you follow, the Fed gradually reduced the rate of rate hikes to 50 bps in December, after four consecutive rate hikes of 75 bps. Fed fund futures are pricing rates to peak around 4.85% in May before falling to 4.37% at year-end. David Meger, director of metal trading at High Ridge Futures, comments:

The market focused on the idea that the Fed will end rate hikes in early 2023. Therefore, we believe that the trend continues to move in the sideways direction. There will be days when some auxiliary factors force the gold market. However, we believe that the horizontal-to-up trend will remain intact.

“Gold price will remain fluctuating between $1,760 and $1,840”

Expectations of the Fed’s slower rate hikes dampened the dollar’s appeal. Thus, the gold price rose nearly $200 from the two-year low at the end of September. Hareesh V., head of commodity research at Geojit Financial Services, comments:

After yesterday’s strong rally, traders are waiting for new clues, especially from GDP data and the performance of the US dollar. Reports of the increase in Covid-19 cases in China will likely be another trendsetter for the market. Also, the gold price will likely remain fluctuating between $1,760 and $1,840.

“Gold gives up some of yesterday’s gains”

The dollar index (DXY) was strong during the day after the yen’s slide in the last session following the Bank Of Japan’s (BoJ) surprise policy change. Ricardo Evangelista, senior analyst at ActivTrades, explains:

The decision was initially interpreted as a first step towards a more hawkish stance by the BOJ. This triggered an increase in demand for the yen. It also weakened the dollar and benefited gold. Today, however, the shock began to wear off. Therefore, gold is giving up some of yesterday’s gains.

gold price

“Gold price needs more than a calibration in Fed tightening”

Ajay Kedia, director of Kedia Commodities in Mumbai, says gold has seen a slight pullback after the rally. He also notes that the market remained very quiet as it entered the holiday mood.

OCBC FX strategist Christopher Wong notes that rate hikes typically put pressure on gold. However, he says gold could rally as the Fed enters its late cycle of tightening. In this context, the strategist makes the following statement:

However, a more tangible recovery in prices will require more than a calibration in Fed tightening. It will likely require the Fed to pause and perhaps lower interest rates.

gold price

“These continue to be headwinds for gold”

Rob Haworth, senior investment strategist at Bank Wealth Management, comments on the latest developments:

Gold jumped into the middle of the week on weak inflation data and hopes that the Fed will soon end its rate hikes. However, the Fed’s hawk announcement late Wednesday weighed on gold as investors were pricing in a higher final interest rate. The Fed’s latest economic forecasts show that top Fed officials expect to keep interest rates above 5% by 2024.

Looking ahead, Haworth says data on higher interest rates and softer inflation continue to be headwinds for gold investors.

“These two factors mean that gold will see a strong rise”

Higher interest rates typically support dollar and Treasury yields. It also makes non-returning assets such as precious metals less attractive in comparison. Adrian Ash, director of research at BullionVault, comments:

The increase in interest rates with the dollar reduces the attractiveness of gold as an unyielding protection tool of the dollar. Still, the resistance in bullion prices this year is in stark contrast to the crash in 2013. It also contrasts with the worst year in living memory for stock/bond portfolios. As a portfolio diversifier, gold will gain attention around the new year “both because of seasonal rebalancing and because January brings the Chinese New Year and is currently the busiest single gold buying festival in the world.” These two factors mean that gold will typically see a strong rise in January.

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