The gold price posted a third-week decline as a strong dollar and upcoming rate hikes dampened appetite for the unproductive asset. However, according to market analyst Christopher Lewis, the yellow metal is here fighting and trying to survive.
“There is weakness underneath, but it keeps fighting”
Christopher Lewis states that gold markets fell to cut the $1,800 level during the trading week. According to the analyst, by doing this, he shows a certain amount of weakness. However, the analyst also states that the market did not give up and fought. Lewis continues his analysis in the following direction.
If we sink below the candlestick bottom of the week, more weakness is likely in the gold market at that point. It’s possible that we’ll have to give up maybe around $100.
At this point, rallies are good buying opportunities for a consolidation game. But I don’t see them as anything more than that. The market continues to be noisy. Of course it will be very sensitive to interest rates in the US, which has been quite noisy lately.
In the beginning, gold really started to deteriorate. But when New York came online, we saw some relief. So maybe this is something worth paying attention to as well.
“$2,000 for gold price possible, but not soon!”
If the market breaks higher, I think the $1,880 level will be the main resistance. It will be difficult to get above that. If we can go up from there, then it’s possible that the market will really start to rise. Maybe it’s likely to hit the $2,000 level before all is said and done. I don’t think this will happen anytime soon.
However, this is something you need to be very careful about. As a result, the markets are very noisy and difficult right now. So it’s probably easier to trade this market from a short-term perspective. Given enough time, I believe we are likely to see this market show extreme strength or weakness. Right now it’s essentially a 50-50 discussion.
“The dollar is the most important factor that puts pressure on the gold price”
The hawkish monetary policy of the biggest central banks has pushed interest-bearing gold into its worst quarter in more than a year. According to Chris Gaffney, head of world markets at TIAA Bank, the dollar is the biggest factor pushing gold. The bigger picture, Gaffney says, is rising interest rates.
India raises basic import duty on gold
By the way cryptocoin.com As we reported, India, the world’s second largest consumer of bullion, increased its basic import duty on gold from 7.5% to 12.5% in order to reduce its foreign trade deficit. Ajay Kedia, director of Kedia Commodities in Mumbai, says that while there is strong physical gold buying in the third quarter, usually between festivals, this will impact demand immediately.
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