Fed rate cut expectations are starting to cool, can gold soar and achieve a sharp rise?

Mondo Finance Updated on 2024-01-29

With the last full trading week of 2023 just around the corner, the fortunes of ** may improve. However, as the holiday season approaches, people don't seem to be in a hurry to buy. Ahead of the New Year, ** is expected to remain low-key and new bullish momentum is unlikely.

*The market remains highly sensitive to changes in market interest rates. Although there are some out-of-context views this week that the Fed will make six rounds of rate cuts in 2024, this does not mean that gold prices are the best. Until there is no material signal from the Fed to cut interest rates, gold prices are likely to maintain a weak correction.

This year's performance has lagged behind the average performance of the year, and although it hit an all-time high, there was soon a big take-back. ** The weak state makes the high gold price like a kite, which may be recovered at any time.

Recently, **eight consecutive trading days**, refreshing the record of the longest continuous ** in half a year in the past year. Although the demand for oxidation has surged this year, the overall demand for ** is still under control. It is almost impossible for the price of gold to soar.

Last week's gold price showed a shooting star pattern, which could have an impact on the next move. Although gold prices stabilized at the 2000 mark this week, the long and short prices are still playing at a high level. However, as the price of silver continues to weaken, it will be difficult for gold to maintain such a high price.

From the perspective of long-term volatility, it is recommended to build short positions above 2000. Consider building bears in batches in the 2020-2050 zone, targeting the first support zone in the 1980-1950 zone, and further down in the 1930-1880 zone.

In terms of silver prices, although there is a bit of ** this week, it still stops below the 24 mark. Therefore, the high-altitude idea remains the same, and it is recommended to pay attention to 238 to 242 area, the target looks at 225 to 217 area.

Data and events to watch out for next week include the PCE inflation data due on Thursday. If inflation continues to cool, it will intensify calls for a sharp rate cut, and the market will also receive a final estimate of Q3 GDP. The focus will be on a possible economic slowdown in the first half of next year, which will trigger Fed easing. In this case, ** may be boosted. In conclusion, it may be wise to stay on the sidelines and keep a close eye on the market dynamics.

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