Gold prices rose on Tuesday, supported by the weaker US dollar and Treasury yields, as traders await December inflation data and weigh bets on a faster rate hike by the Federal Reserve. We have compiled Analisdollarserin market reviews and technical analysis for the readers of Cryptokoin.com .
“If the US inflation exceeds the forecast, the yellow metal may fall further”
Evaluating the developments in the markets, DailyFX strategist Margaret Yang said, “The decline in both the US dollar and 10-year treasury rates is a result of the decline in gold prices. “The price is supporting the greenback, but markets are still seeing three to four rate hikes this year, limiting the upside potential.”
Meanwhile, the yield on 10-year Treasuries fell to about 1.757 percent from a nearly two-year high of 1.808 percent. Gold is considered a hedge against high inflation, but the precious metal is highly susceptible to rising interest rates as it increases the opportunity cost of holding non-yielding bullion. Goldman Sachs now expects the US Federal Reserve to raise interest rates four times this year, matching the view of JP Morgan and Deutsche Bank analystsdollars.
The dollar tumbled against a basket of currencies as traders look for new clues about the timing and pace of policy normalization as they look back at Fed Chairman Jerome Powell’s nomination hearing later in the day. Margaret Yang assesses the impact of the inflation figure on gold as follows:
Markets are predicting a 5.4% annual increase in core inflation, and if the figures exceed this estimate, we could see the dollar rise even higher and the gold price fall. However, if inflation falls below expectations, it may provide some relief for gold.
Kitco Metals senior analyst Jim Wyckoff said in a note, “Trader and investor risk aversion hasn’t been sharp earlier this week, but neither has their appetite for risk.
Pablo Piovano: Gold now targets the $1,830 region
Open interest on the gold futures markets reversed the previous day’s decline and is around $1,830 on Monday, according to flash data from CME Group. 14.2 thousand contracts increased. However, the trading volume has shrunk by around 104.5k contracts for the first time ever this year.
According to market analyst Pablo Piovano, the yellow gold fiadols started the week in an upbeat mood amid rising open interest rates. However, the analyst states that more gains are likely in the very near term with the immediate target at the recent highs in the $1,830 region.
Key levels to watch for gold price
Technic Confluences Detector used by market analyst Dhwani Mehta shows that gold price is one saadollarsik SMA200, one-day SMA10 and the previous four saadollarsik It shows that it is heading towards a dense cluster of healthy resistance levels near $1,807 where the high coincides.
If the bullish momentum extends, gold price could challenge the one-day R2 pivot point at $1,809; Above this, one-week Fibonacci 61.8% and one-month Fibonacci 23.6% consolidation at $1,813 will come into play. Moreover, the analyst states that buyers will target the one-day R3 pivot point at $1,818. Dhwani Mehta points out the following levels in his technical analysis:
On the flip side, the sudden downside is capped at $1,803, which is the four saadollarsik SMA100. The next relevant support is the one-day SMA200, one saadollarsik SMA100 and one-month Fibonacci 38% It is seen around $1,801-1800, the intersection of .2. Fibonacci 38.2% will come to the rescue of the gold optimisdollar series after $ 1,798 one day. The last line of defense for the bulls is predicted at $1,794. At this level, the one-week Fibonacci 23.6% meets the four hourdollarsik SMA200.
View on Technic Confluences Detector. 
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