Weekly Analysis 25 Feb, 2024
The fundamentals of gold are currently experiencing a mix of factors, Last Friday, the surge in gold prices was attributed to escalating tensions in the Red Sea region and US sanctions imposed on Chinese and Indian companies. Moreover, members of the Federal Open Market Committee (FOMC) are adopting a hawkish stance towards gold.
In the event of a collapse in the Financial Conditions Index (FCI) following the recent conflict and with stock markets reaching all-time highs, combined with potential quantitative easing (QT) or rate cuts, gold could potentially skyrocket to $2300-2500. In such circumstances.
However, Federal Reserve remains bearish. This week's important news are Gross Domestic Product (GDP) and Personal Consumption Expenditures (PCE). If the PCE exceeds expectations, it can be very bad for gold, particularly if it goes below 2%, which would be bullish for gold.
Gold below $2060 is bearish, gold has already corrected by 50% at $2036, and there isn't strong support on the daily chart until it hits $1980.
The fundamentals of gold are currently experiencing a mix of factors, Last Friday, the surge in gold prices was attributed to escalating tensions in the Red Sea region and US sanctions imposed on Chinese and Indian companies. Moreover, members of the Federal Open Market Committee (FOMC) are adopting a hawkish stance towards gold.
In the event of a collapse in the Financial Conditions Index (FCI) following the recent conflict and with stock markets reaching all-time highs, combined with potential quantitative easing (QT) or rate cuts, gold could potentially skyrocket to $2300-2500. In such circumstances.
However, Federal Reserve remains bearish. This week's important news are Gross Domestic Product (GDP) and Personal Consumption Expenditures (PCE). If the PCE exceeds expectations, it can be very bad for gold, particularly if it goes below 2%, which would be bullish for gold.
Gold below $2060 is bearish, gold has already corrected by 50% at $2036, and there isn't strong support on the daily chart until it hits $1980.