Gold Technical Analysis: Gold Price is Holding onto Gains

Continued downward pressure on the US dollar is positive for gold in XAU/USD, whose gains extended resistance at $1,82 /oz. This is despite an expected rise in US interest rates and a shift in tone from the US Federal Reserve to a less dovish tone. Gold prices failed to break the resistance at $1,81 per ounce, confirming that gold price XAU/USD is under pressure to do more. Technical indicators have reached an overbought level according to the development of the daily chart. Gold prices of XAU/USD are little changed in 2022, but with the US dollar rallying in recent weeks, it could shine even brighter next year. It can even trigger some newly updated predictions. Gold looked poised to rally significantly along with energy and food commodities when Russian troops entered Ukraine in February, but the metal’s rally was short-lived and since then the year’s top currencies have underperformed. supermarket . Gold Hits Six-Month High Recent US inflation numbers partly reflected the strong rise in the US dollar this year, and gold has since hit a six-month high. Commenting on the development, HSBC metals price analyst James Steele said: “The levels of the US dollar have historically had a significant impact on gold and generally gold trades in the opposite direction to the US dollar. The analyst added that much of the weakness in gold prices in 2022 was driven by the strength of the US dollar, which reached levels seen in decades. And that changes the timing of a possible gold gain in 2023. While economic risks from the Ukraine invasion seem to push gold back above the $2,000 ounce level seen in 2020, the Fed’s interest rate response sharply accelerates inflation and its impact. the dollar was fast. to lower prices. Therefore, the analyst warns: „While easing inflationary pressures cast doubt on the pace of Fed rate hikes, recent comments from Fed officials confirm further tightening. Fed tightening could remain a significant negative for gold for at least the first quarter of 2023.”

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