At the time of writing, gold was trading at $1,755, just above the psychological level of $1,750, up 0.54% daily. Market analyst Anil Panchal states that a daily bearish retracement could lead to a test of the Fibonacci scale, with a 38.2% rate of $1,756 to be the key for gold. The latest developments in the markets and Anıl Panchal’s gold analysis. Cryptocoin. com we have prepared for you.
Analyst: The Evergande event is a volatile and forward-looking risk
Analyst Anil Panchal says fundamentals favor a risk-based approach in markets where investors are buying the Federal Reserve’s optimistic outlook, while emphasizing that the Evergande event will be a volatile and forward-looking risk.
Cryptocoin. com, Evergrande has settled a coupon payment on a Shenzhen-traded bond, but on Thursday it was due to pay $83.5 million in interest on $2 billion offshore bonds, and $47.5 million in bonds next week. There is also an interest payment. There is a 30-day window for arranging payments, which the company says it is trying to reconcile. In a report by Reuters, the following points were mentioned:
Evergrande President Hui Ka Yan urged its managers late Wednesday to ensure the delivery of quality properties and the redemption of wealth management products generally held by millions of individual investors in China.
“Gold traders should watch for US Treasury yields for a fresh revival”
Gold bears took a breather near a six-week low, pushing the price yellow to $1,744 in the early saadollar series of Friday’s Asian session. The yellow metal slid the most in a week the previous day after rising around 1.43% as US 10-year Treasury bonds posted their biggest daily gain in seven months. U.S. bond yields rose as traders reassessed the U.S. central bank’s hawkish stance after an initially pessimistic response to the Federal Reserve’s decision. However, the Fed left benchmark rates unchanged at around 0.25% at the last meeting, but signaled rate hikes.
A key role is to abate fears that China’s embattled real estate company Evergrande poses a serious threat to it, according to Anil Panchal. The firm received restructuring plans, demonstrated its readiness for a planned coupon payment, and also received government support to dispel the pessimistic sentiment. Meanwhile, it is worth noting that the US$3.5 trillion stimulus and ongoing negotiations over vaccine optimism have contributed to risk appetite. Analyst Anil Panchal states that the softer traces of the US PMI preliminary data for September failed to remember the gold buyers and the US Dollar Index (DXY) experienced the biggest drop in a month on Thursday.
Continuing, gold traders should pay close attention to US Treasury yields for a fresh revival, while expected US New Home Sales of 0.7 million versus the previous 0.708 million could provide extra clues for August.
Gold technical analysis: $1,717 will be a hard-to-crack nut for sellers
Market analyst Anil Panchal states that despite the 23.6% Fibonacci retracement (Fibo) on the downside in June-August, the gold price kept breaking the six-week support line the previous day and is currently resisting around $1,750. He makes the following analysis:
Also, bearish MACD signals and continued trading below the 10-DMA, as well as a descending trendline from September 3, also favor sellers. However, it should be noted that with the August 10 low near $1,717, the golden bears may challenge the 23.6% Fibo.
Anil Panchal, the RSI near the oversold conditions is at $1,741 in inches and points to the following levels in his analysis:
If gold sinks below $1,717, it will return to the $1,700 threshold and yearly lows near $1,687. Meanwhile, a rise beyond the turned resistance near $1,750 will be examined by the 10-DMA $1,770, and a three-week resistance line near $1,780. After the upside break of $1,780, the 50% and 61.8% Fibonacci retracement levels near $1,801 and $1,829, respectively, could delight gold buyers before challenging the double tops of $1,834. Overall, gold fiadollary yellow remains bearish but $1,717 will be a tough nut to crack for sellers.