Smiling Gold Price Forecast: These Levels Are Awaited!

0

The gold price saw the red for the first time in four trading days, with the improvement in the market mood that brought Wall Street to new record highs. Alleviating concerns over the highly contagious Omicron coronavirus variant combined with strong US Retail Sales data has heightened risk perception while sacrificing traditional safe-haven gold. But, according to market analyst Anil Panchal, the decline in the gold price seems limited by lower price action in interest rates and the US dollar, and market conditions eased by the holiday put the gold price at risk of wild volatility.

“Low incoming data supported gold prices”

Gold price strengthens around $1,812 during Tuesday’s Asian session after renewing its weekly high the previous day. As reported by Somanews, the yellow metal is cheering the market’s at-risk mood and lower US dollar prices to keep buyers hopeful in the final days of 2021. According to the analyst, even as the mild calendar and holiday mood restrain the performance of the precious metal, the easing of the Omicron variant and the stimulus hopes could be cited as the main catalysts for the latest market optimism.

Comments from US Vice President Kamala Harris, who signaled to use the tiebreaker to pass President Joe Biden’s Build Back Better (BBB) ​​stimulus plan, also bolstered market sentiment. Along the same line were headlines from the People’s Bank of China (PBOC) and the Chinese Ministry of Finance favoring easier money to help drive the economic growth of Australia’s largest client. Additionally, ongoing talks on Iran’s denuclearization and a global push for peace between Russia and Ukraine seem to have calmed the markets.

The analyst states that the negative pressure of the US Dallas Fed Manufacturing Index at 8.1 compared to the expectations of 13.2 for December and 11.8 previously put pressure on the US dollar and supported gold prices. However, Wall Street started the week on a positive note, renewing the S&P 500’s all-time high, while US 10-year Treasury yields fell 1.7 basis points (bps) from a two-week high to 1.47%. .

Gold price technical analysis: Bulls take the reins

Market analyst Anil Panchal states that gold is hovering around the 200-SMA, below the double tops seen in the past month, and reminds that the year-end inactivity can be well detected from the stagnant MACD signals near the overbought zone and the lackluster RSI. However, the analyst states that gold buyers are holding the reins, as evidenced by the two-week ascending trendline, noting the following technical levels:

On the other hand, a clear upside break of $1,816 will be necessary for gold bulls to target the highs marked around $1,834 in July and September. Alternatively, gold sellers need a clear downside break of the two-week ascending trendline near $1,802 for re-entry. Additional support lies at the $1,800 threshold. Following the price’s weakness past $1,800, the $1,787 100-SMA level will act as a buffer before leading the golden bears to $1,765 and the monthly low to $1,753.