Gold price moving around key resistance level
‘THE daily price chart for gold is holding firm at a key resistance level in the range of $1,800 to $1,810 per ounce, which will last at least until the end of December,” says PP Link Securities business manager Chhea Chhayheng.
Since August, the gold price has tested the key resistance after dropping from $1,900 to $1,626 per ounce.
“In the gap of $1,800 to $1,700 per ounce, there is a descending triangle pattern suggesting the next move for the price of gold will be in a sideways range.
“It is clear the gold trend – pressured by the value of a US dollar supported by a 15-year-high rate of interest – is bearish,” Chhayheng says.
According to a recent Federal Reserve FOMC statement, the current target range for the federal funds rate is 4.25 to 4.5 per cent.
Kitco News’ Neals Christensen said: “Gold’s ability to hold the line around $1,800 an ounce is finally starting to attract new bullish speculative interest as hedge funds increase their long exposure in the precious metal and further reduce their short bet.
“The precious metal is looking to end the year down less than two per cent, which would make it one of the best-performing assets, just behind the US dollar.
“While bullish sentiment is building in the marketplace, some analysts are warning investors that they will need to be patient in 2023.
“Although the gold market is expected to continue to outperform most asset classes in the new year, some major banks and commodity analysts are not expecting to see a significant push higher until the second half of the year.
“For now, gold prices are expected to remain in neutral territory at around $1,800 an ounce.”
With such a move, for the weekly trading recommendation, Chhayheng suggests investors consider selling gold at around $1,800 per ounce, with the take-profit function set at $1,770.
“However, with the $1,800 per ounce resistance not breaking until the end of the year, the next resistance will be in the range of $1,819 to $1,824 per ounce,” Chhayheng says.