Markets hawkish sentiment may be at its peak after spending more than $35 this week in response to a more aggressive Federal Reserve meeting minutes, according to

. Analisdollarser sees this as a positive signal that golden bulls are following closely. We have compiled veteran analystsdollarserin market reviews and gold predictions for the readers of Cryptokoin.com .

hawkish stance on FOMC minutes

The big news that rocked the gold market this week is that a ‚tight‘ US labor market and troubled inflation may require faster rate hikes and balance sheet shrinkage. The Fed’s December meeting minutes.

Respondents generally stated that, given their individual view of the labor market and inflation, it is warranted to raise the policy rate sooner or more quickly than respondents previously anticipated. They also pointed to a more hawkish stance, by stating that “Some respondents also indicated that it may be appropriate to start shrinking the Federal Reserve’s balance sheet soon after policy begins to increase interest rates.”

Bart Melek: Gold fiadollaryellow could rally between $40-50

Analisdollarser cautions that this view may be outdated given the rise in Omicron cases in December and January pulling. “Omicron has an impact,” Bart Melek, head of global strategy at TD Securities, said in a statement. We are already starting to see this in employment data,” he comments.

US nonfarm payrolls (NFP) increased by only 199,000 in December, well below consensus estimates of 400,000. November data was revised and 249,000 positions were added. Meanwhile, the US unemployment rate fell to 3.9%, beating market consensus expectations of a decline to 4.1%. Bart Melek comments:

Today was a huge disappointment. But despite weak employment, the relative consensus is that inflationary pressures are still there. Gold prices can still rally to $40-50 in the first quarter. But then gold is likely to slide lower. There is no guarantee that the Fed will be restrictive. The market believes the Fed will take firm action, but I’m not so sure they can.

Gold will survive this sale

Blue Line Futures chief market strategist Phillip Streible, in light of changes in macro data and the Omicron outbreak, said in a statement to Phillip Streible. The week states that the Fed may have peaked in how hawkish it is perceived:

Gold will survive this sale. We use this fix to get gold again. Currently, it is trading at the bottom of its range. It is useful to step in at these price levels. But we still don’t have a major catalyst to push gold significantly higher. Yet we are at the pinnacle of falconry.

Edward Moya: $1,770 is a good support level for the yellow gold price

From now on, the markets will say “Fed’s in 2022” How much interest rate hike can he commit? Will be busy with the question. Wall Street is now struggling to figure out what would be neutral interest. “Several rate hikes have already been billed for 2022,” said Edward Moya, senior market analyst at OANDA. Gold had a bad week, but it could have been much worse when you consider that the 10-year Treasury rate has risen from 1.53% to 1.75%.

Edward Moya sees $1,770 as a good support level for the yellow gold price next week.

“This should bring gold closer to $1,900”

Gainesville Coins precious metals expert Everett Millman notes that long-term investors still support higher gold prices:

Even if interest rates rise, real interest rates will still be negative due to high inflation. This is positive for gold. Also, in the last two rate hike cycles, gold prices have performed very well at the beginning of these increases. We may see a repeat of this when the Fed starts raising rates later this year. That should bring gold closer to $1,900.

Data to watch and its implications

One of the macro data to watch out for next week is the latest US inflation, scheduled for release on Wednesday. will have numbers. Market consensus forecasts the consumer price index to rise to 7% year-on-year in December. James Knighdollarsey, ING’s chief international officer, assesses the prospects and impact as follows:

The figures for the coming week are 40, with the headline CPI breaking over 7% year-on-year and the core rate well above 5% year-on-year. It will show that it is fast approaching the highest level of the year. This will only increase pressure on the Fed to start raising interest rates.

Also, Thursday’s scheduled US PPI and jobless claims and Friday’s US retail sales will play a key role. Markets will also focus on Tuesday’s nomination hearing for Fed Chairman Jerome Powell to the US Senate Committee on Banking, Housing and Urban Affairs.

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Michael Lewis

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