© Reuters.
Investing.com – Gold prices held their luster for the fifth week in a row, as bulls predicted a test of $1,950 an ounce on Friday – and analysts said a breakout would be crucial to sustaining the precious metal’s rally, which was triggered by anticipation of smaller price increases in the United States. United.
“Gold is facing some strong resistance ahead of the $1950 level, and that could continue until we get to the policy-making Federal Open Market Committee decision at the beginning of the month,” said Ed Moya, an analyst at online trading platform Audana, referring to the February 1 rate decision. Next”.
“If the bullish momentum holds, then the $2000 level will continue to be massive resistance,” Moya said.
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gold now
Gold settled in futures contracts during these moments of today’s trading at levels near $ 1926 an ounce, without an increase or decrease.
The spot price of gold in US dollars settled during today’s trading at $1925 levels.
Next gold target
Investing.com data shows that if gold surpasses $1950 for February, its next major target will be the April 18 target of $2003.
Apart from its advance on Friday, the American index rose 0.3% for the week, adding to its gains of 6.7% over the previous four weeks.
Spot gold peaked at $1937.54 on Friday – the highest level since $1955.93 reached on April 25th. The bigger target for spot gold will be the March 10 target of $2009.57.
Gold’s upward trajectory came in the form of declines this week, despite its recovery on Friday.
Federal Fada
Dollar and bond yields are falling in anticipation of the Federal Reserve applying the lowest interest rate increases in eight months at the end of February 1 for the next policy meeting, in exchange for a series of strong increases that it applied in 2022.
Officially, inflation rose 6.5% in the 12 months through December. That was the slowest annual advance for the consumer price index since October 2021.
The CPI hit a 40-year high in June when it grew at an annual rate of 9.1%, against the federal inflation target of just 2% annually. In an effort to control soaring prices, the Federal Reserve has added 425 basis points to interest rates since March with seven rate hikes. Before that, interest rates peaked at just 25 basis points, as the central bank cut them almost to zero after the global COVID-19 outbreak in 2020. From June through November, the bank imposed a modest increase of 50 basis points in December.
For its next rate decision on February 1, economists expect the central bank to announce a smaller 25 basis point increase.
The last time the Fed announced a 25 basis point increase was in March 2022, at the start of the current rate hike cycle.
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