Gold Price Forecast on Friday
The US dollar’s retreat from a nearly two-decade high encourages the gold price (XAU/USD), which is moving toward $1,750 during Friday’s Asian session. However, by the time of publication, the metal has reached a new intraday high of $1,745.
In spite of this, James Bullard, CEO of the Federal Reserve Bank of St. Louis, told Reuters, “We’ve got a fair shot at a gentle landing.” Additionally, Federal Reserve Governor Christopher Waller stated that the Fed needs to implement a more restrictive policy since inflation is far too high and does not appear to be slowing down.
However, US President Joe Biden is scheduled to meet with his top advisers on Friday to decide on the tariff strategy for China. Prior to this, US and Chinese diplomats hinted about a face-to-face meeting following the success of the most recent virtual trade negotiations. Beijing is certain that by figuring out the supply-chain conundrum, it can help the US with its inflation problem. The same solution, however, received less praise from analysts. According to Bloomberg, China is prepared to provide $220 billion in stimulus through hitherto unheard-of bond sales.
Technically, August gold futures saw prices hit an 8.5-month low Wednesday. Bears have the solid overall near-term technical advantage. Prices are in a four-month-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1800. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1700. Reported by Kitco.
First resistance is seen at $1750 and then at Wednesday’s high of $1771. First support is seen at this week’s low of $1730 and then at $1715. Investment is risky, so investors need to set stop-loss function.
Analyzed by: Ms. Teang Riya Independent Analyzed
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