July 2, 2022
  • July 2, 2022

Is the bullish journey over?

By on December 27, 2021 0

Despite the state of optimism regarding the new COVID variant and risk appetite, gold prices rebounded higher, stable around $ 1,811, near their highest in one month, in a context falling US dollar. Recently, various studies have indicated that the last wave of the epidemic will be less damaging economically than the previous ones. In this regard, the two vaccine companies, AstraZeneca and Novavax Inc, have stated that their doses protect against Omicron. New UK data has indicated that it can cause relatively fewer hospital cases than the delta variant.

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U.S. consumers took a hiatus in November after a month of rising vacation spending, but that hiatus is likely to become more permanent if Americans pull out in the face of the fastest inflation in decades and an omicron variant. . U.S. government figures were at the center of a wave of pre-holiday economic reports that showed stronger durable goods orders, increased new home sales and firm consumer confidence. There are a series of crosscurrents underlying the spending figures. Many Americans, who made headlines on overcrowded supply chains, started shopping for the holidays earlier than usual this year, which helped explain the strong gain in the previous month.

But consumers also face the fastest inflation in decades. The personal consumption expenditure rate measure, which the Fed uses to target 2% U.S. inflation, rose 0.6% from the previous month and 5.7% from November 2020, the most recent value. highest since 1982.

The data follows a hawkish trend from U.S. central bank officials who have come under pressure to take action against rising prices. As a result, the Bank has announced that it will accelerate the end of its asset purchase program, and new interest rate expectations indicate that policymakers favor a three-quarters increase in borrowing costs. percentage point next year.

China’s central bank has pledged to further support the real economy and said it will make monetary policy more forward-looking and focused. The People’s Bank of China made the comments in a statement posted on its website on Saturday after a quarterly meeting.

Technical analysis

Gold’s stability will remain around and above the psychological resistance of $ 1,800, supporting the uptrend and movement towards stronger resistance levels, the closest of which are $ 1,818, $ 1,827 and $ 1,845 . These are important levels to support an uptrend. On the flip side, the support level of $ 1775, depending on the performance on the daily chart, will remain a threat to expectations of an increase in the price of gold. Bearing in mind that the closure of many global financial markets for Christmas may affect market liquidity and hence investors’ desire for adventure. I still prefer to buy gold at all bearish levels.

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