Gold may rise above 2000
2023.01.24 13:40
Gold may rise above 2000
Budrigannews.com – Gold needs a healthy correction to rebound and break above crucial resistance zones.
In the near term, a pullback to the 1,845-1,876 zone will indicate that the precious metal might rebound.
Global markets had a brief change of heart last week, but there was no deterioration in general expectations. Data from the US was disappointing, while data from the Eurozone was positive.
The United States’ economic data was subpar. The decline in, the weakening on the side, and the slowdown in particular demonstrated that growth challenges persist.
The most recent data surprised to the upside in the Eurozone economy, which deteriorated in the second half of 2022. The Eurozone’s best hope is that its energy supplies will last through the winter. This winter could go by without a hitch thanks to the favorable weather.
Russia’s warnings about February are significant, even though geopolitical risks have taken a back seat. Additionally, it is anticipated that food prices due to drought in 2023 may be the first issue, while energy prices will be at the forefront in 2022. In the spring, this situation is expected to surface. This could boost inflation globally.
The Fed was aggressive in raising interest rates from May to November. The situation changed in November, when it recovered its 8-month losses in just 5 weeks and reached $1,900 once more.
The 5-week pricing is unaffected at this time, but as concerns about a recession lessen, the rate of gold’s rally may slow. In the coming months, gold’s direction will be determined by forthcoming data.
The week ended with gold above $1,920. However, the previous day’s correction was less than I had anticipated. Long-term gold’s rise depends on a healthy correction. The price may rebound even more strongly in the event of a correction.
If there is a pullback, the upward movement toward 1,980 may continue as long as the support level of $1,876 holds. A pullback to the 1,845-1,876 area in the near future will indicate that the precious metal may recover and challenge important resistance areas.
Disclosure: None of the mentioned securities belong to the author
