The gold price is supported by a risk aversion mood, with US Senator Joe Manchin’s rejection of the BBB. Meanwhile, U.S. Treasury yields continue to fall, limiting the dollar’s rise despite risk aversion. Market analyst Dhwani Mehta states that gold will retest the key supply zone of $1,815 in a risk aversion environment. Strategist Yeliz Karabulut, who made critical statements about the gold price, comments that “gold prices will go on a knife-edge” for 2022. cryptocoin.com We have compiled the market assessments and analyzes of two analysts for its readers.
“$1,800 level critical threshold for yellow metal”
This week, the US Federal Reserve (Fed) announced its interest rate decision. While the Fed increased the tapering rate with the effect of the persistence expectations in inflation, it pointed out that the interest rate hike expectations will be pulled to May as a timing and three rate hikes will be made in 2022 rather than two. Strategist Yeliz Karabulut states that there is a tightness in her horse and she says she expects an interest rate hike and three rate hikes in the first quarter of next year.
The strategist, who said, “I felt that Fed Chairman Jerome Powell had an uneasiness about inflation” in his speech, states that despite this uneasiness, his statement that he would not increase interest rates so quickly caused purchases in gold. Yeliz Karabulut draws attention to the following levels:
The $1,800 level is the critical threshold for gold. Above this level, a rally to $1,830 and $1,870 can be seen.
According to the strategist, the US, Russia and Ukraine conflict and the problems in the Chinese real estate sector can be cited as other factors that keep gold prices high. Yeliz Karabulut thinks that the gold pricing will go sharply next year and shares the following views:
If the Fed’s uneasiness about persistence in inflation increases and raises interest rates in the same way that it suddenly lowered when the pandemic started (I think this is a very reasonable scenario), this may cause a collapse in gold prices.
The strategist thinks that if the Fed decides to act fast on the interest rate, there may be a pullback below the level of 1,760 to the level of 1,500, and he expects next year to be the year of the dollar. Yeliz Karabulut, in all her analyzes since the beginning of the year, predicts that DXY will increase up to the level of 97, and while she maintains this expectation, she thinks that it can be seen above the level of 100.
At what levels will new buying opportunities for gold arise?
According to market analyst Dhwani Mehta, gold price is below three-week highs, but is supported by the risk-free market profile. Uncertainties surrounding the Omicron variant have shaken investor confidence. Meanwhile, U.S. Senator Joe Manchin jeopardized his $1.75 fiscal posting plan by hanging Democrats over the rejection of Joe Biden’s bill. The analyst states that falling Treasury rates continue to weaken the US dollar by providing additional support for gold, and broader market sentiment will continue to play a major role in gold’s move amid a mild calendar.
The Technic Confluences Detector used by the analyst shows that the gold price has found some support at $1,797, which is the one-day SMA50, the four-hour SMA5 and the 23.6% Fibonacci convergence in one week. The analyst states that failure to resist above the latter will trigger a drop towards $1,791 where the one-week Fibonacci 38.2% coincides with the one-day SMA100.
Further south, there is strong support at $1,787, the intersection of SMA5 one-day and 23.6% one-month Fibonacci. Dhwani Mehta states that the last line of defense for gold buyers is seen at $1,783, at which point the one-day SMA10 meets the one-day pivot point S2, noting the following level for a buying opportunity:
Alternatively, new buying opportunities will only appear on a sustained break above the $1,803-1,804 supply zone, where the one-month Fibonacci 38.2%, one-day Fibonacci 38.2%, and the previous high four-hour supply zone intersect.
According to the analyst, Fibonacci 61.8 at $1,807 one day will offer strong resistance to the upside and $1,814 the next day’s high will be on buyers’ radar.
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