Technical Analysis
Continuation Bullish / Upward Movement
Demand Level: 1975.29 - 1978.16
The prediction for gold indicates a significant upward trend, presenting an opportunity for gold investors. This trend suggests that the signs of weakness in the USD are likely to decrease in the long term, prompting investors to shift towards the safe-haven asset, gold. The rise in gold prices is also influenced by the Fed's anticipated stance of maintaining their narrative that monetary policy will hinge on inflation and they will hold interest rates for as long as necessary. The trend supports the upward pattern, coupled with candlestick support.
Fundamental Analysis
Gold prices rose on Monday (11/21) with a weakened dollar providing support for the prices. Investors are now awaiting the minutes from the latest Federal Reserve meeting for clues regarding the central bank's interest rate updates.
According to Reuters on Tuesday (11/21) morning, Bart Melek, the head of commodity strategy at TD Securities, stated, 'Technically, we have seen gold reach resistance and return to trading within a limited range with slightly higher interest rates as a catalyst here.'
Spot gold rose 0.36% to $1,984.97/oz at 07:50 WIB this morning, according to Investing.com data. Futures gold rose 0.34% to $1,987.00/oz.
The Fed is expected to maintain its narrative that monetary policy will depend on inflation and will hold interest rates as necessary, he added.
The Fed's meeting minutes will be released on Tuesday.
Data from last week revived hopes that the Fed might start easing monetary conditions earlier than expected after a slowdown in the job market and consumer inflation reports weaker than anticipated.
Lower interest rates put pressure on the dollar and bond yields, increasing the attractiveness of gold, which does not provide yield.
The strengthening of precious metals has lost momentum and requires new fundamental boosts, analysts at Kitco Metals wrote in a note.
The increase in US Treasury yields surpassed the declining dollar and rising oil prices, making gold and silver buyers hesitant, Kitco revealed.
The dollar weakened by 0.4% to 103.38, reaching its lowest level in more than 2.5 months against several other major currencies, also boosting the gold trend."
This provides a breakdown of factors influencing gold prices, including the role of the dollar, the upcoming Federal Reserve meeting minutes, and market sentiments influencing precious metal trading.
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