According to market analyst Saqib Iqbal, the weekly gold price forecast points to a bearish scenario as the US dollar gains traction from rising US bond yields and dwindling speculation from the Fed.
Gold prices remain calm for now
Gold, which started the new week calmly, seems to consolidate the gains of the previous week. cryptocoin.com As we reported, gold prices fell 1.6% on Tuesday as risk-averse markets helped the dollar find support after the Labor Day holiday. It recovered a small portion of its losses on Thursday, but lost about 2% for the week as a whole.
The market forecast for August exports was 17.1%, but the data showed an increase of 25.6%. In addition, Eurostat reported that the euro area’s gross domestic product (GDP) increased by 2.2% quarterly in the second quarter, beating analysts’ expectations of 0.6%. However, despite these optimistic data, the global stock market sentiment worsened. In contrast, the US Dollar Index (DXY) rose 0.35%, causing gold to slide.
Tapering noises rise in Fed
We’ll start the week with the US Consumer Price Index (CPI), which will be released on Tuesday. Loretta Mester, Chairman of the Federal Reserve Bank of Cleveland, said on Friday that she sees the risks of raising inflation forecasts and that contraction should begin before the end of the year. Likewise, Atlanta Federal Reserve Chairman Rafael Bostick said contraction will be appropriate at some point this year.
Analyst Saqib Iqbal says that if the consumer price index is stronger than expected, investors may begin to consider a reduction in the Fed’s asset purchases, and vice versa. Consumer confidence data from the University of Michigan will be released Friday, ahead of the Philadelphia Fed Manufacturing Review to be released Thursday.
Weekly key economic data
The Japanese economic calendar for the week ahead is pretty light. However, PPI figures, industrial production and machine order data could provide slight volatility in the market, according to the analyst. Key data in Japan for September 13-17:
Next week, annual core inflation data, which is expected to decrease slightly, are coming. However, analyst Saqib Iqbal states that a big surprise in the numbers could trigger a big move in the market. In addition, retail sales data, which will be released on Tuesday, are expected to improve slightly. Retail sales data is important as it is considered an indicator for measuring market efficiency. Finally, on Friday, Michigan Consumer Sentiment data is expected to be released, which could support the US dollar. Here are the key data in the US for September 13-17:
Weekly technical analysis of gold prices: There may be bearish dominance ahead
Market analyst Saqib Iqbal emphasizes that gold prices have remained below key SMAs all week, making the following analysis:
Tuesday’s common bearish bar came in with very high volume and closed at the bottom. The price formed a double top at $1,833 and has been falling ever since. This could be a sign of a reversal pattern from the top. However, the price may try to test or break the double top next week. On the downside, the price could test the support levels at $1,772 before $1,750.
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