"$1,780 level is critical for ounce gold price" - News-Credit-Mortgage-Coin


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Thursday, September 30, 2021

"$1,780 level is critical for ounce gold price"

 Stating that the speeches of the central bank governors of the USA, Europe, Japan and England at the European Central Bank Central Banking Forum today may have an impact on the direction of the markets, analysts stated that the Euro Area consumer confidence index and pending home sales data in the USA will be followed.


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Precious metals continue to be weak on the back of rising bond yields. We expect the weakness to continue as we stay below 1.780 technical level below ounce. It can be viewed as 1.720-1.700-1,675 support below.


With the Dollar accompanying the rise in the US ten-year bond yield, the precious metal fell by 1 percent yesterday and closed the day at 1.734. This morning, although a partial pullback is observed in the US ten-year bond yield, movements above 1.50 percent continue, and we think that the movement in the hawkish Fed and energy prices may continue to keep the upside risks in the US ten-year bond rate on the agenda.

In this context, we think that Ounce Gold can be withdrawn to 1.724 support by staying below 1.750 resistance. Apart from the mentioned levels, 1.710 below and 1.762 above can be viewed as support and resistance.


Ounce gold is trading near the 1739 level in the morning hours in the forex market. While the rise in the Dollar Index and the US bond yields continues, the decrease in ounce continues. This morning, the Dollar Index is close to 93.67 and the US 10-year bond yields are close to 1.53%. With the increasing pressure, the precious metal fell below the 1740 level, which it has been holding on for a while, yesterday. The hawkish statements from Fed members weaken the ounce of gold while giving strength to the Dollar.

Yesterday, Fed member Bullard said that two rate hikes could be made in 2022. Fed Chairman Powell made a presentation to the Senate Banking Committee. He emphasized that the economy is far from the maximum employment target. Today, at 18:45 CET, the statements of ECB President Lagarde and Fed President Powell will be followed at the Central Banking panel organized by the ECB.

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