Gold prices went back and forth throughout the trading week. During this period, it showed signs of hesitation just below the critical $2,000 level. However, geopolitical tension enables it to find support. Strategists and analysts are evaluating the next move of gold.
Commerzbank: Gold fpricelari closein 2,000 to the dollar can reach
Gold is in significant demand as a safe haven. Commerzbank strategists do not expect the Fed’s decision to affect gold too much. In this context, strategists make the following assessment:
Considering the tense situation in the Middle East, gold prices may even reach the $2,000 level in the near future. Gold will continue to be in demand in this environment. So the Fed’s decision is unlikely to affect gold too much.
Gold outpaces the strength of US GDP
‘cryptokoin.com’As you follow from, gold prices have recovered after the decline in the first half of the week. The yellow metal is trading above $1,980 again. Gold defies strong US GDP data, Commerzbank economists say. In this regard, economists make the following statement:
Stronger-than-expected US third-quarter GDP data was an indication that the US economy was much more resilient than most expected, but it could only put short-term pressure on gold. In particular, continued strong demand raises the possibility that the Fed will raise its key interest rate further to ensure inflation weakens further. This risk in itself indicates limited upside potential for gold at the moment. On the other hand, there is still a risk of escalation of conflicts in the Middle East. This has caused prices to rise even more recently.
HSBC: Climate change has an impact on gold prices!
The impact of climate change could trigger “safe haven” demand for gold, according to HSBC analysts. Analysts say climate change has a similar impact on gold as other geopolitical events. They explain their views on this subject as follows:
The effects of climate change are likely to cause economic, financial, political and even social disruptions around the world, triggering a ‘safe haven’ demand for gold. Gold mining is one of the most carbon intensive mining activities. However, its high value, small amount mined, and gold’s cyclicality put its total lifetime emissions below those of other metals, making its story more positive.
Gold prices are consolidating in a narrow range
Arab countries continue to condemn the bombing. However, Israel carried out its largest land attack on Gaza at night. Safe-haven gold prices have increased by nearly 8% since the war began on October 7. New York-based independent metals trader Tai Wong comments on the impact of the developments:
Gold is consolidating in a very narrow range, holding on to almost all of its recent gains, as the market remains extremely concerned about a conflagration in the Middle East.
There is the possibility of additional safe haven buying for gold!
The Federal Open Market Committee meeting will take place October 31-November 1. Investors see a 98% chance that the Fed will leave interest rates unchanged. If there is an escalation in the conflict in the Middle East, there is the possibility of additional safe-haven buying, according to TD Securities commodity strategist Daniel Ghali. Additionally, the analyst states that gold investors will also monitor the outlook for US Treasury bonds. Ghali also shares the following assessment:
In our view, the Fed will most likely end its tightening campaign. This is already priced in the gold market.
Technical view: Gold prices It’s on the doorstep of $2,000
Technical analyst Christopher Lewis comments on the technical picture of gold. Gold has gone back and forth throughout the week as it continues to threaten the $2,000 level. Of course, the $2,000 level is a big, round, psychologically important number. It’s also an area where we’ve seen a significant amount of resistance in the past. So it’s a level where you’re going to see a lot of noisy behavior. However, it looks like we are trying to create some kind of hammer like a candlestick. So the question now is whether it will lead to higher pricing or be a “hang man”.
If we break below the bottom of the candlestick, then the $1,950 level enters the target. After that, there is the 50-Week EMA for gold prices. On the upside, the $2,050 level is followed by the $2,075 level as a major resistance barrier. … The market has spent a few weeks soaring. Therefore, it makes a certain sense that we go horizontal for a while. So I wouldn’t be surprised to see choppy consolidation in this general environment. Volatility will likely worsen at this point. So, your position sizes will be very important at this point.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!