Gold demand is increasing, leading to a rise in its market value.
Increased market expectations about the end of the Federal Reserve’s tightening cycle will push gold prices to climb higher, according to analysts.
Thus, commodity experts at TD Securities state the continued gold rally due to an expected decline in Fed interest rates this and next year.
At the same time, head of commodity strategy at Saxo Bank Ole Hansen considers today’s stance of Fed Chairman Powell is not quite optimistic for gold. However, geopolitical tensions, the ongoing banking crisis, stable demand for the metal from central banks, high inflation and the dedollarization trend will support gold in the long term.
Senior market analyst at OANDA Edward Moya believes that gold’s strength is significant. According to financial indicators, serious consequences for the real economy might follow, supporting increased demand for safe-haven assets.
As for the next target for gold after the update of its record value, the experts target the level of $2100 per ounce.
The U.S. Nonfarm Payrolls data will be released today at 12:30 GMT.
The number of employees is projected to decline to the level of 180,000, which is 56,000 less than before. If the forecast meets expectations or the figure falls even lower, the dollar will weaken and, consequently, strengthen the precious metal price.
The gold price has a clear ascending resistance line in an expanding range on the H4 timeframe. The middle proportional line between an expanding ascending corridor has already shown its value in the last wave’s pullback from it.
The price is in the formation of the second pullback wave on the H1 timeframe. There are signs of its completion and transition to the third impulse wave, but today’s news backdrop may create a wait-and-see attitude.
The most profitable entry point to buy gold is near the middle line of the ascending channel on the H4 timeframe.
Signal:
To buy near the level of 2030.50.
The target is at the level of 2078.00.
Part of the profit should be taken near the level of 2055.80.
The Stop-loss is at the level of 2010.00.
Bullish trend is of short-term nature, so it is worth selecting the trading volume of not more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
