The gold price is seeking a support from a seasonally favorable time starting mid-December. And strategistsdollarser are watching if the momentum will be strong enough to push gold above $1,850. We’ve prepared gold forecasts and market analyzes for readers of Cryptokoin.com by Walsh Trag co-director Sean Lusk and RJO Futures senior market strategist Frank Cholly.
“Aggressive tapering program and three rate hikes in 2022 were hugely worth it”
Walsh Trag co-director Sean Lusk, viewed from a seasonal perspective states that the demand for physical gold has been a big help in boosting prices from mid-December to Valentine’s Day. The Director makes the following assessment:
Gold and silver may develop in the next 6-8 weeks. With the arrival of the new variant, easy money policies will remain. It was accepted, the Fed signaled that they would start increasing interest rates. However, there is still a lot of uncertainty between the global recovery and new geopolitical tensions.
Sean Lusk notes that for this reason, gold maintains the range of $1,780-1,800. The Federal Reserve’s more aggressive tapering program and the potential for three rate hikes in 2022 have already largely paid off. According to Sean Lusk, this means that any new fears can change the outlook and benefit gold:
The trend is rising into next year. It looks like the new Covid-19 variant could give the Fed more pause in aggressive tapering and rate hikes. Geopolitical risks or the crude oil cut may affect the perceptions of the markets.
Sean Lusk’s gold predictions: Closes the year at $1,850, the next target is $2,000
RJO Futures senior market strategist Frank Cholly says: Or before taking a position this way, he warns that investors should make sure that the current bullish movement in gold is not a head fraud:
The gold market continues to imitate these heads. The padollars whimper and gather, but then the movement quickly fades. I can’t get too excited about gold until it hits $1,835, maybe even $1,850.
From a technical point of view, Sean Lusk states that the funds do not have a strong long position in gold that will enter next year and this may be changing. Gold could challenge the $1,880 level, last seen in mid-November, according to the strategist. Sean Lusk explains:
Head and shoulders may be forming and we can start shooting higher. We’re getting higher lows. This ultimately leads to higher peaks. In the near term, there could be an increase to $1,815 in the February contract. If we get past that, we’ll be sailing up to $1,833 and then $1,875. If gold manages to close the year at $1,850, the next target will be around $2,000.
Frank Cholly’s gold predictions: Resistance path higher for gold above $1,850
Real interest rates are low despite Fed rate hikes According to Frank Cholly, who stated that he will direct the price of gold in 2022, problematic inflation will finally come into play and will be one of the macro drivers that will help the price rise in 2022:
This is a point where gold will start to rise due to the idea that inflation is heating up. it will be. As we enter the first quarter of 2022, we will see more price pressure. And once gold climbs above $1,850 this time, the resistance path will be higher.
Frank Cholly adds that if gold goes above $1,850 comfortably, more people will be afraid of losing it. While the initial reaction to the Fed’s tapering and higher interest rates is negative for gold, it could trigger another rally once it’s worked out:
Generally, higher rates mean a stronger dollar, according to the strategist. But the Fed’s tightening cycle in 2022 could be bullish for gold. This may not be the first reaction, but gold will be in demand as inflation hits all other commodities. When fiyadollarsar rises, most commodities see a brake on demand. For gold, this creates demand for fear of missing out. The inflation protection narrative is something people want.