The gold market is experiencing new momentum as prices test new significant resistance levels due to growing expectations that the Fed will cease its tightening cycle following its announcement of its monetary policy decision next week. At the time of writing gold is up by +1.20%; trading at 1977.71 per ounce.
With August gold futures currently trading around $1,979.90 per ounce, on the day, gold prices have risen to a seven-week high. Some market observers believe that this could signal the beginning of a new surge towards $2,000 per ounce.
A weekly close over $1,973 would signal a breakout in the technical bull-flag pattern that gold’s price action is building. Watch out for resistance between $2,017 and $2,020 as the next level to be aware of. This threshold might be tested as soon as next week, she said.
Some analysts think the gold bulls have total market control. He noted that he is also paying special attention to the $2,000 level. The sentiment and the momentum are there, but it might take another day or two.
Markets anticipate that the Fed will raise rates just once more in this tightening cycle next week, which is why gold is seen as catching a bid. The market has almost entirely factored in a Wednesday move of 25 basis points. The market expectations for Tuesday are being raised by the weaker-than-expected US retail sales figures.
The most recent data from the US Commerce Department show that retail sales in the US increased by 0.2% in June after an upwardly revised 0.5% gain in May. The headline number for last month increased by 0.4%, as predicted by economists.
Tags FED Gold interest rate speculations
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