According to a recent analysis by Mr. Warut Rungkham, Director of Analysis at YLG Bullion and Futures Company Limited, the price of gold is expected to continue its downward trend next week. This decline can be attributed to the toxic effects of China’s struggling economy, which caused gold prices to plummet from $1,015 to $852 baht per ounce between September 1st and 15th.
The slowing growth of the Chinese economy, coupled with a weakening Chinese real estate market, has dampened investor confidence. Previously considered a powerhouse driving economic growth, the Chinese real estate market is now proving to be a hindrance.
Moving forward, there are several key factors that need to be monitored. Firstly, the Federal Reserve Bank’s (The Fed) upcoming monetary policy meeting, scheduled for September 19th and 20th, will have a significant impact on gold prices. If the meeting yields positive economic numbers, it is likely that the Fed will maintain high interest rates to control inflation. Currently, investors anticipate a 97% chance of the Fed maintaining interest rates at 5.25-5.50% during the September meeting.
Additionally, the Bank of England (BoE) is expected to halt interest rate hikes following their recent decision to increase rates by 0.50% to 5.00%. This move was aimed at curbing inflation; however, data suggests that inflation in Britain will not recede as quickly as anticipated.
Similarly, the Bank of Japan (BOJ) is likely to cease its highly accommodative monetary policy. The BOJ is placing emphasis on sustainable wage increases as a determining factor in deciding whether and when to withdraw the stimulus measures.
From a technical standpoint, the support levels for gold are assessed at $1,884, $1,867, and $1,851 per ounce. On the other hand, resistance levels are situated at $1,930, $1,953, and $1,971 per ounce.
In terms of investment strategy, it is advisable to assume the risk of initiating a short-term sales position to maximize profit. This approach is recommended in the event that the price recovers closer to the upper limit of the downward trend. However, it is crucial to monitor the resistance levels at $1,924-1,930 per ounce. If the price fails to surpass these levels, it is recommended to take advantage of price fluctuations by selling positions and cutting losses if the price surpasses $1,953 per ounce. Profits can be taken by closing the short position if the price remains above the support levels of $1,889-1,884 per ounce.
Overall, the future of the gold market is dependent on a multitude of factors, including the performance of the Chinese economy, the actions of central banks such as the Fed, BoE, and BOJ, and technical indicators. Investors should remain vigilant and adapt their investment strategies accordingly.
China’s economy is releasing toxic effects, causing gold prices to plunge, revealing that it has fallen from 1-15 September to around 24 dollars an ounce. As for the trend next week, what will it be? Let’s go look at the details.
Mr revealed Warut Rungkham, Director of Analysis YLG Bullion and Futures Company Limited, addressgold price next weekwith Nation Online that the trend towards gold is varying Side down after pricegoldDuring September 1-15, it fell to about 24 US dollars per ounce, or about 852 baht (calculated at an exchange rate of 35.50 baht per US dollar).
This is becauseChinese economyIt will grow less than expected this year and next year as a result of the market.Chinese real estatethat isstillwas once the engine that drives the country’s economic growth
Positive and negative factors that must be followed
– Recommend following up on meetingsFederal Reserve Bank (The Fed) will hold a monetary policy meeting (FOMC) on September 19-20, based on strong economic numbers. Help support the Fed Maintaining high interest rates for a long time. to control inflation
Investors expect that there is a 97% chance that the Federal Reserve will hold interest rates at the level of 5.25-5.50% at the monthly meeting. September and pressure only 3.0% that the Fed will raise interest rates by 0.25% to the level of 5.50-5.75% and pressure almost 67% that the Fed will temporarily stop raising interest rates again. In the November meeting that has a negative effect on the price of gold
– meeting ofBank of England (BoE) It is expected that the BoE will stop raising interest rates. After the last meeting Announced an interest rate increase of 0.50%, higher than expected from 0.25% to 5.00%, the highest in 15 years, marking the 13th consecutive increase in interest rates to control inflation. This comes after data showed that inflation in Britain would take longer to fall.
– MeetingBank of Japan (BOJ) It is expected that the BOJ will end the use of extremely easy monetary policy. Bank of Japan Emphasizes sustainable wage increases as a prerequisite for deciding whether and how to cancel the highly conciliatory fiscal stimulus measures?
However, the first support is assessed at 1,884 US dollars per ounce. The next support level is 1,867 US dollars per ounce. and the last support line 1,851 USD per ounce Although the first resistance level is 1,930 US dollars per ounce. The next resistance level is 1,953 US dollars per ounce. and the final resistance level at 1,971 US dollars per ounce.
sideInvestment strategy Recommend taking the risk of opening a sales position to make a short term profit. If the price recovers closer to the upper limit of the Sideway direction down, if the price cannot stand above the resistance level of 1,924-1,930 dollars per ounce. Focus on profiting from variations. Sell positions to cut losses if the price passes the resistance level of $1,953 per ounce. Close the short position to take profit if the price does not fall beyond the support level of 1,889-1,884 dollars per ounce.
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