After falling $40 this week, all eyes are on the gold market at next week’s Federal Reserve meeting, according to analystsdollars. Cryptocoin. com
As , we have compiled for you what could happen next week and analyst expectations…
Frank Cholly: We may see $1,720 for gold next week
Gold slumped to four-week lows on Thursday and fell from $1,790 an ounce to $1,750 an ounce after much stronger US retail sales figures. This is big news ahead of the Fed’s interest rate announcement on Wednesday. Because this may mean that a reduction will be made sooner rather than later. Frank Cholly, senior market strategist at RJO Futures, made the following important statements in a recent statement:
Now the control bears… Gold is currently in a new trading range. The short-term trend is bearish. If US k data continues to surprise the upside, gold may be ready for another sell-off. We see that yields are starting to increase and the US dollar is strong. This puts pressure on gold. We may see $1,720 next week. I don’t think it would be difficult to pull another $30 off the market.
Bart Melek: Another problem for gold right now is the lack of interest from new buyers
Bart Melek, head of global strategy at TD Securities, said that another problem for the yellow metal right now is the lack of interest from new buyers. Bart Melek adds the following to his explanations on the subject:
Investors are ready to sell any suggestions that k activities are better than expected. Because that makes them believe the Fed won’t hesitate to start contraction.
Everett Millman: $1,740 support and resistance 1.770-1. between $800
Gainesville Coins precious metals specialist, Everett Millman, noted that gold ignores its usual drivers and instead focuses on macro data. Everett Millman adds the following to his explanations on the subject:
1,700-1 per ounce of gold. Comfortable for $800. Unless I have some surprising data, I don’t expect the precious metal to oscillate excessively one way or another. The $1,740 level is support and resistance is 1.770-1. Between $800.
Everett Millman: Gold market wants rates to stay low
Everett Millman said the focus is on Wednesday’s Fed statement, as markets pay close attention to every detail regarding the timing of bond purchases. Everett Millman said: “The Fed has laid the groundwork and everyone is aware of the situation. The central bank doesn’t need to keep doing that until at least December. ” said.
Looking forward, the US central bank will pay close attention to US inflation and employment data when updating the market in its future contraction plans. “If the Fed does nothing on Wednesday, but announces in December that it has a plan and is going to do something, that would be a little good for gold,” Millman said. The gold market wants rates to stay low. ” he added.
Bart Melek: We can reach the $ 1, 730 level! But I don’t see a direct drop
Bart Melek stated that even if the Fed does announce something, it is unlikely that the yellow metal will drop much lower. Bart Melek adds the following to his explanations on the subject:
I don’t think we are at great risk of selling here. There is still a belief that rates are not really rising. In the US, we have a central bank that focuses on full employment and tells us that inflation is not falling. It’s a big concern. To me, it indicates contraction will happen, but it won’t be overly aggressive. Looking at next week’s FOMC meeting, we can see some pretty strong clues. On the downside, $1,740 is still a pretty decent support. We can move to the $ 1,730 level. But I don’t see a direct drop.
Here is the data to watch for the next week for the yellow metal
Fed will release updated k forecasts and dot chart next week. Other data to watch for the week ahead include Tuesday’s building permits and housing starts, Wednesday’s existing home sales, Thursday’s Bank of England interest rate announcement and US jobless claims, and Friday’s new home sales.
Furthermore, Fed Chairman Jerome Powell will deliver keynote speeches at Friday’s virtual Feds event titled ‘Perspectives on Pandemic Recovery’. Also, Canada is going to the polls on Monday after Chief Justin Trudeau called for early elections to get a majority government.