gold analysis
XAUUSD
17.01.2024
As bond yields rise, gold approaches $2,000
The positive seasons of January this year are not presented
Gold fell to a one-month low as the market lost confidence in the impending tapering by the Federal Reserve and other central banks.
Today's US retail sales report underscored this point.
Gold typically rises in January with a strong seasonal effect, but that hasn't been the case this year as it has been hit by changes in Treasury yields and expectations of a rate cut.
It is also possible that gold is suffering from a physical aspect, because the unease in the Chinese economy has deepened and gold buyers are giving up buying gold for now.
Whether this situation continues or not, I have talked in detail about the willingness of Chinese investors to buy gold in some previous analysis clips.
I expect the central banks of Russia, China and the Middle East to be keen buyers at this point and I will be watching the market to see if $2000 remains.
If not, it will fall to the low on December 13, 1972.
Note that today's meeting of the Federal Reserve was not without reason and Mr. Powell slightly leaned towards the Dovish dove.
XAUUSD
17.01.2024
As bond yields rise, gold approaches $2,000
The positive seasons of January this year are not presented
Gold fell to a one-month low as the market lost confidence in the impending tapering by the Federal Reserve and other central banks.
Today's US retail sales report underscored this point.
Gold typically rises in January with a strong seasonal effect, but that hasn't been the case this year as it has been hit by changes in Treasury yields and expectations of a rate cut.
It is also possible that gold is suffering from a physical aspect, because the unease in the Chinese economy has deepened and gold buyers are giving up buying gold for now.
Whether this situation continues or not, I have talked in detail about the willingness of Chinese investors to buy gold in some previous analysis clips.
I expect the central banks of Russia, China and the Middle East to be keen buyers at this point and I will be watching the market to see if $2000 remains.
If not, it will fall to the low on December 13, 1972.
Note that today's meeting of the Federal Reserve was not without reason and Mr. Powell slightly leaned towards the Dovish dove.