352
139 shares, 352 points

Gold fiadollaryellow found support from ‘flight to safety’ as Omicron cases rose on Wednesday and benchmark US stock indices and dollar weakened. But after the release of the Federal Open Market Committee (FOMC) minutes from the subsequent December meeting, the fiyadollarsar began to withdraw. At the time of writing, gold recovered after seeing the psychological level below $1,800 and is trading at $1,805.

Is gold entering a bear market?

Kriptokoin.com , as we covered in the news, FOMC minutes showed that they thought that interest rate hikes could come faster than the authorities had previously expected. Gold Newsletter editor Brien Lun commented:

Fed minutes were hawkish, showing greater concerns that inflation will persist and generally pointing to an accelerated schedule for rate hikes. Therefore, they were bearish for gold, as confirmed by the sudden market reaction in the gold price. Lukman Otunuga, head of market analysis at

FXTM, comments, “Investors seem to be turning to gold as rising Omicron cases accelerate the flight to safety.”

However, according to Brien Lun, any indication that the first rate hike will come sooner is actually bullish for gold, as gold often rises with the Fed’s rate hikes. Brien Lun gives the following example for this situation:

The Fed’s first rate hike in December 2015 ended the long bear market of gold, and the yellow metal rallied strongly for months afterwards.

“FOMC minutes may cause gold to drop if interpreted hawk”

Lukman Otunuga, How gold will complete first trading week of 2022 not only from FOMC meeting minutes, but also from key US Friday’s Reminding that it will also be affected by business data, he makes the following assessment:

If investors interpret these reports in a way that strengthens expectations that the Fed will raise interest rates three times this year, it could cause zero-yield gold to fall.

The official US jobs report will be released Friday and they expect a total of 422,000 jobs have been added to sdollarser. Metals markets, meanwhile, showed little reaction after ADP reported Wednesday that private sector payrolls rose 807,000 in December, more than double the 375,000 expected by sdollarser. Colin Cieszynski, chief market strategist at SIA Wealth Management, comments:

All of the current news is viewed through the eyes of investors speculating on how quickly the Fed might start raising interest rates after the asset-buying program ends in March.

Pablo Piovano: Gold remains focused on $1,800

Gold futures market open interest rose with more than 10,000 contracts on Wednesday, taking into account flash data from CME Group and reversed two consecutive daily reversals on Wednesday. Along the same lines, volume extended its uptrend for the third consecutive session.

Market analyst Pablo Piovano reminds that gold prices are falling further and approaching the key $1,800 region, noting that the negative price action comes after increased open interest and volume. Pablo Piovano makes the following analysis:

This indicates that extra losses remain in the pipeline in the very near term. Against this, the key $1,800 level still emerges as a huge magnet for occasional bearish attempts.


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