Hard Wave Coming? 4 Great Predictions for Gold Price!

Gold will struggle as high inflation keeps central banks in a tightening cycle, according to ANZ Bank. Commerzbank says gold will likely rise once the Fed ends its aggressive rate hikes. According to a technical analyst, the gold price will be stuck in the $1,615-1,666 range. Another analyst gives the target of $ 1,730 for the gold price. We have compiled the forecasts and comments of analysts for our readers.

ANZ Bank: Gold investment demand slumped

Inflation is rising everywhere. Because of this, central banks are raising interest rates beating the yellow metal. Inflation remains stubbornly high. Therefore, according to ANZ Bank strategists, monetary policy is likely to tighten even more. Strategists make the following assessment:

Given the Fed’s hawkish tone, US benchmark rates are expected to rise. This provides reinforcements to the currency. These continue to be headwinds for the gold price. In the midst of this, demand for gold investment has suffered. However, physical demand remains strong with rising spot premiums in Asia. This compensates for some weaknesses in the investment branch.

Commerzbank: Investors are still giving gold the cold shoulder!

Koindeks.com As you follow, the gold price has recently settled near $1,650. Commerzbank strategists note that the yellow metal remains under pressure due to the outlook for rate hikes. Strategists explain their views as follows:

There are some indications that the pace of rate hikes will slow down after the 75 bps step expected next week. This pushed gold up to $1,670. This could be interpreted as a sign that gold will have valuable upside potential as soon as the aggressive rate hikes come to an end. But the situation is not like that now. That’s why many of the price increases have reversed again.

“The majority continues to bet on the gold price drop”

According to Commerzbank, investors are still giving gold the cold shoulder. Therefore, it creates a permanent counterwind. Strategists note that speculative financial investors significantly expanded their net shorts last reporting week. They explain this situation as follows:

So the majority continues to bet on the falling gold price. ETF investors sold heavily again last week. Here, too, it’s possible that mere signs of the end of aggressive rate hikes possibly triggering a shift in sentiment.

Critical technical levels for gold price

Gold remains finite in a narrow range. Technical analyst Dhwani Mehta expects gold to increase its range trade around $1,650. In this context, he states that a random recovery attempt should be accepted on the 21-DMA at $1,666. The analyst draws attention to the following levels:

Gold price is likely to expand mid-range play with the 21-Day Moving Average (DMA) at $1,666 and the strong anchor at $1,615 ahead of critical events this week.

According to the analyst, any rescue attempt would have to be considered above the 21-DMA on a daily close basis. Dhwani Mehta continues his claims on the side:

The next upside barrier holds Monday’s high at $1,671. The October 13 high of $1,683 will challenge bearish commitments should the recovery pick up pace. If the recent decline extends, Monday’s low of $1,644 will offer close reinforcements. Below this, the test of the round number of $ 1,630 will come to the fore.

“Gold price now targets $1,730”

Open interest on gold futures markets rose by about 11.8 thousand contracts this time in the second session on Tuesday, according to preliminary data from CME Group. Volume followed, increasing continued volatility to around 25.5K contracts.

Gold price posted sufficient profits on Tuesday. Thus, it partially erased the improvement seen at the beginning of the week. The increase was behind higher open interest and volume, according to market analyst Pablo Piovano. The analyst also says it allows for more gains in the very near term. Accordingly, he expects further recovery in the precious metal to target October’s high of $1,729.

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