Weekly forecast for gold prices: Gold rises after data

Recommendation of the week: Gold against the dollar

Best buy entry points

• Entering a buy trade with a pending order from 1944 levels.
• Best pips to place stop loss closing below 1919 levels.
• Move the stop loss to the entry zone and follow the profit as the price moves $12.
• Close half of the contracts with a profit equal to $15 and leave the rest of the contracts until the strong resistance levels at 1990.

Best selling entry points

• Entering a sell trade with a pending order from 1994 levels.
• The best pips to place a stop loss close to the 2010 highs.
• Move the stop loss to the entry zone and follow the profit as the price moves $12.
• Close half of the contracts with a profit equal to 15 points and leave the rest of the contracts until the 1944 support levels.

The price of gold recorded increases during last week’s trading. Gold received support from inflation data released earlier, which revealed a slowdown in inflation in the United States of America during last October, beyond expectations. These released data contributed to supporting analysts’ view that it is likely that the Federal Reserve has reached the peak of monetary policy tightening, as interest rates will not record further increases. Inflation figures rose in October, recording 3.2% compared to 3.7% recorded last September. While expectations indicated that inflation would reach 3.3%.

Meanwhile, statements by US monetary policy makers issued over the weekend last Friday contributed. In raising the state of uncertainty and increasing fears among investors, which had a negative impact on gold. Boston Federal Reserve Bank President Susan Collins said on Friday that she does not rule out the possibility of further monetary tightening, stressing that it is too early to declare victory over inflation despite the recent “good news.” Collins described the latest data as “very noisy,” highlighting that the central bank must be “patient” as its policy “works its way through the economy’s numbers,” which can be seen in the country’s labor market “slowly shifting back into balance.” She noted that the central bank needs to closely monitor inflation in the housing sector.

On the technical level, the price of gold recorded increases during last week’s trading before losing some of its gains at the end of the week. The price settled within a bullish channel on the four-hour time frame shown on the chart. Currently, if the price of gold declines, it may target the strong support levels concentrated at 1970 and 1955, respectively. On the other hand, if the price rises, it may target the resistance levels concentrated at 1994 and 2005, respectively. At the same time, the price is trading above the 50 and 200 moving averages on the daily time frame, as well as on the four-hour time frame in a row, indicating the dominance of the general bullish trend in the medium term. We expect the price to decline as long as it settles within the specified price channel. Please maintain capital management and enter into a buy and sell deal according to the daily developments in gold news, which we will report on a daily basis.

The chart was produced by the platform TradingView

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