Gold crosses critical threshold on 4th attempt


Spot gold in international markets is trying to maintain its strength after the sharp fluctuation experienced with the effect of the US inflation exceeding expectations and rising to 6.2 percent in October. With the rapid rise following the inflation data, the yellow metal reached its highest level since June, reaching up to $ 1,868. San Francisco Fed President Daly’s assessments that it is “too early” to speed up asset purchases or raise interest rates are encouraging investors to turn to gold as a hedge against inflation.

According to analysts, gold’s breaking above the critical resistance level of $ 1,834, which it has not been able to pass for months, sends an important bullish signal to the markets. As a matter of fact, although this region has been tested in three separate periods since July, it has not been crossed. Therefore, the positive result of the fourth trial may lead to a bullish trend, according to analysts.

If 1.845-1.850 is preserved, 1.900s will be spoken

The course of real returns is the most critical factor at this point. At $1.834/36, which is shown as an important resistance level in front of the upward moves of gold, it is shown as the level that must be overcome for a deeper revival. Credit Suisse strategists said in a note released this week that positive scenarios for the outlook for gold would become stronger if this level is exceeded. However, it is stated that if the $ 1,845 – $ 1,850 band is protected, the upward trend will not be broken in the short term. Thus, according to the bank’s experts, who said that $ 1,870 will be targeted as the next resistance and that the levels of 1,900 will be spoken again, 1.917 may emerge as a new resistance point.

Stating that the short-term support level has risen to $ 1,759, analysts emphasize that this eases the pressure on gold, and they add: However, seeing below the level of $ 1.691, which now seems farther away, may trigger a significant downtrend change. Because at this level, gold can fuel a decline that will turn $ 1.620 and then $ 1.565 into support.”


Source: Dünya Gazetesi by www.dunya.com.

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