Even though gold prices are on the rise, they cannot remain permanently above the psychological threshold of $ 2,000. According to one market strategist, gold is not a market investors want to pursue as it has been unable to maintain gains above $2,000.
The decline will be greater than most people expected!
cryptokoin.comAs you follow from , gold prices cannot continue their rise beyond $ 2,000. Carley Garner, co-founder of brokerage firm DeCarley Trading, says she is neutral on gold after its recent rally lost momentum once again at the $2,000 level. However, she states that she is not giving up on the precious metal. In this regard, she tells investors to be a little patient. She also advises them to wait for another buying opportunity. In this context, Garner makes the following statement:
There have been a few times in history when chasing the gold has worked. But this has only happened a few times in history. It’s usually the type of market you want to buy on really big dips. We advised our clients to maintain a neutral gold position. We are just waiting for the next sale. I think the decline will probably be larger than most people expect.
At some point this will help the gold price!
Carley Garner says she will look for a new entry point around $1,920. However, she adds that there is a possibility that gold may drop to $1,860 due to increased market uncertainty. There is a risk that the gold price will fall to seven-month lows, strategist says. However, Carley also notes that changing interest rate expectations appear to be creating a new base for the precious metal above $1,900.
Carley states that the important difference between now and last month is market expectations regarding the Federal Reserve’s monetary policy. Despite the Fed’s strong tightening stance, markets are calculating that it is done raising interest rates, according to the strategist. In this environment, U.S. dollar and bond yields are likely to peak, Garner says. He states that this weakens two big winds for gold. So far the US dollar has remained quite high, holding solid support above 105 points. However, Garner suggests that it is only a matter of time before DXY weakens significantly. Based on this, the strategist makes the following comment:
We had to be very patient in our short dollar transactions. But if interest rates have peaked and are falling, the dollar should also fall, according to our charts. Even though the US dollar has risen, it’s not really going anywhere. The longer he stays here, the heavier he will get; At some point, this will help gold.
Eventually this perception will change!
Although the $2,000 level has proven to be a stubborn resistance level, Garner says it is only a matter of time before it breaks and gold prices rise to all-time highs. On this subject, Garner shares the following assessment:
Anyone who has been using gold for a long time and has made some money probably sees $2,000 as a good exit point. But eventually this will change. This will especially happen if interest rates start to fall.
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