Gold pricesyellow registered the biggest annual decline since 2015 in 2021 and closed the year down 3.6%. The precious metal rallied on Tuesday after a rise in US bond yields, fueled by bets on an earlier-than-expected rate hike by the Federal Reserve, led to bullion’s worst sell-off in six weeks in the previous session. We have compiled the predictions for the future of Analisdollarserine markets for the readers of Kriptokoin.com .
“Gold prices may see yellow $1,830 and $1,840 resistance levels”
DailyFX currency strategist Ilya Spivak said, “When this kind of rise in rates happens, it undermines the attractiveness of an anti-inflation hedge. . In this case, it’s really not surprising to see gold start weaker.” The Strategist explains:
Towards the end of 2021, interest rate expectations were rising, but inflation concerns were accumulating even faster. Real interest rates therefore remained stable, giving gold some appeal as an inflation-adjusted store of value.
Jeffrey Halley, a senior market analyst at OANDA, says some investors who closed shorts in early saadollars on Tuesday helped the fiadollars, pointing to the following levels:
Gold is likely to face resistance at $1,830 and $1,840, but it would be a big surprise if we see these levels this week.
Mike McGlone: Yellow metal poised for bull market
RJO Futures senior market strategist Bob Haberkorn, rising interest rates, a stronger dollar and an improving He states that risk sensitivity supports stocks and puts pressure on gold prices. The rise of the US dollar index (DXY) against a number of major currencies is making gold more expensive for offshore buyers.
Meanwhile, investors are watching government bond yields as they predict the Federal Reserve will stay on track to raise interest rates in 2022. UBS analyst Giovanni Staunovo predicts that rising US interest rates and falling US inflation through 2022 could put pressure on gold to $1,650 by the end of the year.
Some investors see gold as a hedge against hyperinflation, but bullion is highly sensitive to rising US interest rates, which increases the cost of holding commodities. Mike McGlone, a market analyst at Bloomberg Intelligence, thinks that the movement in the stock markets will determine the direction for gold. The analyst states that gold prices will rise after the decline in the markets, and comments that “Gold is consolidated and preparing for the bull market”.