“Make Your Preparations!”A Famous Analyst Wrote About Developments That Will Affect The Gold Price

coinputin.com – Kitco analyst Anna Golubova today expressed interest in developments in the gold price next week.

Golubova’s comments include:

Gold is trying to reclaim a solid support level of $ 1,850. The next steps in the gold price will be crucial.

If the price breaks, there is a chance the precious metal will climb to $ 1,925, but there is still work to be done first, analysts say.

Gold Price
Gold has had a very successful start to December, showing improvement after its sales below $ 1,800 an ounce last week. At the time of writing, February futures were trading at $1,837.50, up nearly 3 percent from the week.

Supporting forces this week have been the weaker US dollar, stimulus hopes and record high COVID-19-day infections.

Peter Hug, global trading director at Kitco Metals, said the most important development to watch as gold next week was whether the ounce level could exceed $1,850.

Hug noted that the price of six did not deserve last week’s drastic fall, which is why gold rose so much in the first week of December.

Charlie Nedoss, senior market strategist at LaSalle Futures Group, said Gold was currently trading above last week’s highs.

All Eyes Are On The Stimulus
Stimulus talks will be centre stage next week as markets are encouraged by the expressed support for the $ 908 billion coronavirus relief plan in the form of two parties. Moreover, Democrats and Republicans also face a December 11 deadline to pass the $ 1.4 trillion budget. If they don’t, they risk a government shutdown.

“He was involved in talks where Democrats and Republicans could draft an incentive package before the end of the year, ” Hug said. Bridging the gap between today and when the vaccine can take effect is absolutely crucial. Greater liquidity in the market is positive for both commodities and equities. If they don’t pass an incentive package, it could hit stocks and gold as people move into cash.”he’s using his expression.

In the US, the situation is getting harder every day. A very difficult winter is still ahead, according to analysts, who pointed out that Thursday recorded high coronavirus numbers, with 213,000 new daily cases and 2,500 deaths.

Nedoss said the slowdown in employment was already visible and could get worse before it recovered.

“We have seen positive employment growth for the last seven months, but it is getting smaller and smaller every month. The employment figures add to the pressure to get things done and the pressure to really keep the government open. If you combine the two, there’s momentum to get things done.”

Nedoss also expects to see further US dollar weakness, which will be an additional boost for gold.

Gold’s Way Forward
The upward trajectory for gold will include the following resistance levels, according to analysts. First $ 1,850, psychological level $ 1,900, and then $ 1,925. This rise will clear the way to $ 1,975.

Reaching $2,000 by the end of the year, if the incentive is accepted, is also “not out of the question,” Hug added.

Not everyone is ready to jump on the bull market train, however, as Daniel Pavilonis, senior commodities broker at RJO Futures, warns the sell-off may not be over.

“The market is running out here, ” Pavilonis said Friday. I wouldn’t be surprised if I saw a setback next week. We’re in the process of hitting rock bottom. Gold could see $ 1,797. 80 next week. If we close below that level, we could see more sales.”

Positive vaccine news is driving that sense of decline, according to Pavilonis.

“The stimulus package may not be fully agreed upon. With vaccine news, markets are sensing the light at the end of the tunnel, and excessive stimulus is a thing of the past. If we’re looking in that direction and the economy starts to recover and the dollar strengthens, that wouldn’t bode well for metals.”

However, if gold continues to rise next week, it could be “a very important period in which we can continue the trend higher if we close the price at much higher levels,” he said.

Another thing market participants should know is “excessively high stock market levels,” he said, adding: “it would not be surprising to see a correction in stocks. Initially, the movement in metals will be lower, but later this will return to a higher level,” he says.

Pavilonis added that it would not take much time for gold to reach $ 2,000 in this case.

Data to monitor
Friday Thursday’s CPI and unemployment claims figures will be followed by Friday’s PPI figures, analysts said on the US data front.

But much of the excitement next week will be on the EU side. Thursday’S ECB meeting and the possible outcome of Brexit talks are on the agenda.

“Next week will be all about Europe, an ECB meeting (a QE expansion is largely expected) and an EU summit that should mark the end of the bailout fund and Brexit negotiations, ” said ING FX Strategists. The completion and extension of the Pandemic Emergency procurement program is largely expected.”they give a statement.

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