EDITOR'S NOTE: If you look at the markets from a technical analyst’s perspective, the potential for gold to reach a $2,075 record high is quite realistic considering the market’s test of the $2,080 level in August 2020. The difference is that the economic picture has changed. Sentiment may have bolstered gold’s rise over a year ago, but the fundamentals have verified it, and ironically, sentiment once again has to catch up (which is typically the reverse of what happens). But we admit, it’s a confusing market, considering the upcoming rate hikes, the possibility that the rate hikes may be too little and too late, and the new variables of uncertainty brought about by the Russia-Ukraine conflict and the impact of the West’s sanctions on the global economy. The FXStreet article takes a narrower focus, mainly on the technical levels that traders and market timers are looking at closely.
The core trend for gold looks in the process of turning higher again, in the view of strategists at Credit Suisse. A break past $1,917/23 would open up further gains towards the $2,075 record high.
Initial support align at $1,845
“Gold has seen a weekly close above the $1,877 high of November and the spotlight turns to the June 2021 high and retracement resistance at $1,917/23. Above here should add momentum to the rally to confirm a base has indeed been established to raise the prospect of a move back to the $2,075 record high.
“Support is seen moving to $1,845 initially, then more importantly at the 200-day average at $1,809.”
Originally posted on FX Street.