Gold analysis 2022

Gold Forecast

Finally gold prices closed above 1815$ & gave a good hint of future movements. Last week FOMC chairman cleared that Fed will start tapering starting this month. Fed will taper start tapering from $15 billion. Tapering will be complete by June 2022. He also said Fed will adjust course according to economy and market. He meant tapering could be reduced if fed sees some slowdown in economy or in job market.

He also emphasized that rising inflation is transitory and not a permanent trend. He also added interest rate wont see any hike till fed sees inflation at 2% which is their original target.

Interestingly ECB Chairman also had speech last week. She also said there wont be any hike in interest rate for at least one more year. She says its not right to give more heat to people who are already facing higher fuel and other bills due to inflation.

Bank of England also concluded not to increase interest rate last week.

All 3 major central banks are refusing to increase interest rate despite claim of good economy growth and recovery.

ECB President acknowledge the fact that rising inflation is burdening people & economy and it wont be solve for at least 1 year. While Fed seems in total denial. Inflation is running hotter than fed target and yet they are refusing to acknowledge and branding it transitory inflation.

Last week we had many major data to asses economy situation. US Gdp numbers disappointed while Jobs number were better than expected. GDP numbers could be indication of medium to long term slow down while jobs number are still not very stable to asses economy at whole.

Interestingly Equity markets all around the world seems to be disconnect from reality and testing new all time highs almost every week. Gold is still standing tall despite new all time highs and higher dollar index.

Technical Levels For Gold

Currently gold price are sustaining well above 1800$. A major support in technical chart stands at 1750$ now. If gold break & close below 1750$ then expect gold to test upto 1700$.

Resistance in gold price chart stands at 1855$. If gold sustain & close above 1855$. Then expect gold price to test upto 1900$ and even 1950$ is also possible.

Conclusion

Gold finally entered in positive zone and its sustaining well above despite many hurdles from stock market & higher dollar. I would advise to avoid sell if you are looking for medium to long term traders. Keep an eye on my youtube channel for daily analysis as well.

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