Gold Prices Could See These Levels During The Week!

Market analyst Anil Panchal states that gold buyers are holding the reins at August 2020 levels, recording the biggest weekly jump since July 2021 at the latest. Meanwhile, the British Defense Chief hints that there will be more violence in Kiev, preparing to ban oil imports from Russia, even if the US is not allies. US inflation data will be crucial this week as the upbeat jobs report helps the Fed hawks roar before the quiet period. Gold prices are heading towards record high, NEM has closed the last gap, what’s next?

“Recent developments have given safe-haven gold a good rise”

cryptocoin.com As we reported, gold took some of its intraday gains to the highest level since August 2020 and was most recently trading just above the $1,991 level, still up over 1% on the day.

The worsening situation in Ukraine continued to weigh on investor sentiment, evident as an extension of the recent sell-off in global equity markets. In fact, Russian forces have intensified their attacks on Ukraine, and increased Western sanctions have also done little to deter Russian aggression. The analyst interprets the impact of the developments on gold prices as follows:

Recent developments have given the safe-haven gold a decent uptrend, but bulls have struggled to push spot gold prices above the psychological $2,000 level. Considering the recent strong bullish trend, the slightly overbought conditions on the short-term charts have caused traders to take some profit from their bullish positions around gold.

Apart from that, the boom in the US dollar rally was seen as another downside factor for dollar-denominated commodities. However, the downward movement continues to ease amid concerns about the possible economic effects of a further escalation of the Russia-Ukraine war. According to the analyst, the underlying ground remains firmly sloping in favor of bull traders, supporting prospects for further gains. Therefore, the analyst makes the following prediction:

Any meaningful pullback can still be seen as a buying opportunity and is more likely to remain limited in the absence of relevant market bustling economic releases.

Anil Panchal: Gold buyers likely to hold the reins

Also, attempts at a ceasefire in Ukraine to allow the evacuation of civilians from the besieged city of Mariupol failed. In addition, Russian President Vladimir Putin warned that the war in Ukraine would continue. According to The Times, Britain’s Chief of Defense Admiral Sir Tony Radakin said he believed Russia would respond to resistance with more indiscriminate killings and more indiscriminate violence, and further casualties could be expected in Kiev. Recently, however, Bloomberg said that the US has weighed in on acting without allies on the ban on oil imports from Russia. The analyst makes the following assessment:

All in all, gold buyers are likely to hold the reins, but pullback moves cannot be ruled out if this week’s US inflation figures support faster Fed rate hikes.

However, US Non-Farm Employment (NFP) was up 678K, well above the median estimate of 400,000, and was revised up 484K ahead of February. On the same line, the Unemployment Rate fell to 3.8% compared to the previous data. Following the release of the data, Chicago Fed President and FOMC member Charles Evans said, “The U.S. central bank is on track to raise rates this year, but that may be more than I think is necessary to do so at every policy meeting.”

Gold prices technical analysis

According to market analyst Anil Panchal, the recent drop on the four-hour chart justifies the Doji, as gold prices retrace from multi-day highs amid overbought RSI conditions. However, he notes that retracement moves remain unclear until the price defies last week’s triangle breakout by breaking below the previous $1,928 resistance line. The analyst draws attention to the following levels:

Before that, February’s high of $1,967 may also challenge gold’s pullback. In a situation where gold prices dip below $1,928, the $1,900 threshold and an ascending support line near $1,890 from late January will test the bears before they take control. It is also the 200-SMA level at $1,860 which acts as a bearish filter.

Alternatively, it is testing the 61.8% Fibonacci Expansion (FE) in January-February near the psychological magnet of $2,000, just above the theoretical target of last week’s triangle breakout of the precious metal near $2,030. Following this, the analyst says the August 2020 peak near $2,077 will be in focus.

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