World Famous Analysts: Gold Runs To These Levels!

The Federal Reserve’s signal for two more rate hikes cast a shadow over gold. Accordingly, gold is experiencing its toughest week since February. But some experts question the validity of this hawk’s point of view. He emphasizes that the macroeconomic landscape does not provide sufficient support. Let’s look at the details.

Where is the gold price headed?

Gold markets experienced a notable decline last week. It has crossed the lower bound of the previous week’s candlestick. Although this downturn challenges the prevailing uptrend, a possible reversal and display of support will pave the way for the uptrend to continue. In this case, a move towards the $150 level is likely. If the market shows significant strength, it will even target the $2000 level.

However, a break below the candlestick low will lead to further downside momentum in the price. It will potentially lead the price towards the 50-Week Exponential Moving Average (EMA) below the $1900 level. Such a breakout would signal a more significant bearish move and push the market towards the $1800 level.

Gold comments from analysts

Gold prices have recently faced downward pressure in response to the central banks’ decisions. Accordingly, this situation led to an increase in expectations for additional interest rate hikes. Standard Chartered precious metals analyst Suki Cooper explains:

“The market now expects additional rate hikes and macro headwinds have emerged as the US dollar strengthens.”

The macro table is not only compelling for gold. At the same time, its technical position looks unfavorable as prices drop below the 100-day moving average of around $1,940 an ounce. Precious metals expert Everett Millman of Gainesville Coins suggests that this breakout points to more downside potential for gold. On the other hand, he attributes the decline to both macroeconomic factors and worsening technical indicators.

Interest rate cuts

Rate cuts seemed likely before, but less likely now. This leads to the withdrawal of long positions. Kevin Grady, President of Phoenix Futures and Options LLC, said: “Gold expects to see language from the Fed that they will step back. That’s when the bulls will step in.” says.

Also, ETF outflows accelerated in June. Tactical positions have been reduced. Cooper points out that investors’ interest in gold remains relatively high compared to nine months ago. However, it highlights that the net fund length is at its lowest level since 2018. This change in sentiment is typical during periods when gold demand slows seasonally.

Different opinions

While some experts think gold may have bottomed out at current levels, TD Securities senior commodity strategist Daniel Ghali stresses the importance of monitoring macro data, particularly labor and inflation reports, to assess the Fed’s hawkish view. Ghali expects a recession in the fourth quarter. He also suggests that if data supports the possibility of a rate cut, gold could rise to $2,100 early next year.

However, it remains unclear whether the Fed’s hawkish stance will continue. Analysts question the credibility of the Fed’s expectations for further rate hikes. Historical trends suggest that rate cuts often follow a pause. cryptocoin.com Looking at it, the data to be released in the coming days, including US durable goods orders, consumer confidence, new home sales, Q1 GDP, unemployment claims, pending home sales and PCE price index will provide important information on the economic landscape.

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