gold forecast technical chart 2022gold forecast technical chart 2022

Gold at December’s End 2022

Finally FOMC Chairman has cleared that he wants to control rising inflation even if economy doesn’t do any soft landing. Fed chairman cleared from his side that no matter what cost is he will bring inflation down by rising interest rate. He also suggested that Fed wont shy to accelerate to hike rates in future. He hinted 1% rate hike if CPI doesn’t cool down by December. So will he able to by pass some economic indicator and increase rate by 1% by December ? Lets have a look for some facts and analysis how much Fed can control inflation in upcoming months.

Last week US released its Non farm payroll numbers with Unemployment rate. While Non farm was up, unemployment was up as well. Unemployment rate sneaked from 3.5% to 3.7%. This could be taken as a 1st hint of rising interest rate.

Fed chairman already cleared many times that economy is strong and soft landing could be possible but now we have already have one major upside in Unemployment rate. Jobs data came after Fed announced latest rate hike of 75 bps.

As far as my analysis is concerned Fed won’t able to raise interest rate by 1% at this stage. Fed already made dollar index too strong, which fed chairman accepted in his last press conference. Fed already raised interest rate too fast. From almost 0% to now 4% within 8 months. Economy should start feeling heat very soon. Most probably this would be a difficult winter for the west.

Rising cost due to inflation, rising interest rate with rising unemployment could be a recipe for disastrous recession in upcoming months. However we are only 2 months away from closing this year. So lets we will focus on these two months only.

gold forecast technical chart 2022
gold forecast technical chart 2022

Currently gold prices are trading at 1670$. It fired almost 50$ last Friday after US released its Unemployment rate. Despite rising almost 50$ in single day. Gold remain in weak zone on chart.

Good support in gold chart stands at 1610$. This is a major zone as gold price managed to bounced three times from 1610$ odd zone. Once market breach and close this support. Then expect gold to test upto 1550$.

Resistance at 1710$. If gold price manage to close above 1710$ then expect gold to test upto 1750$ & 1800$.

Conclusion: Gold price looks weak as of now. I don’t see any major change till market is holding below 1710$. I think we will close in 1600-1800$ zone. I will modify or post an update on my telegram & twitter if there’s anything new or new development. You can also follow my daily video on my youtube channel

Year 2023 would be very interesting as we will have full fledged risen interest rate and most probably recession to deal with. We might have more clarity in 2023 which we lacked in year 2022.

Wishing you a very happy new year ahead