The price of gold stopped just below $ 1,800 per ounce after Monday's growth. Now, some analysts are warning of a new sell-off if the level of $ 1800 turns out to be too strong resistance.
After a sudden collapse at the beginning of last week, gold managed to recover well, and demand for it returned.
Many people think about the geopolitical outbreak in Afghanistan after the Taliban seized the country after the recent withdrawal of American troops.
Therefore, everyone is waiting for the speech of the Central Bank Governor Jerome Powell on Wednesday.
Gold's movement to the level of $ 1,800 or higher will be important not only from a technical point of view but will also determine its future price direction.
Another multinational investment bank is urging investors to abandon gold, predicting stronger economic growth and an appreciation of the US dollar next year.
Dominic Schneider, Head of Commodities and Asia Pacific Foreign Exchange at UBS Global Wealth Management CIO Office, said that gold could decline to $ 1,600 per ounce, while silver could fall to $ 22 per ounce.
However, not all analysts hold this opinion.
Goldman Sachs still expects gold to hit $ 2,000 an ounce by the end of the year as demand for the yellow metal rebounds.
According to Craig Erlam, senior market analyst at OANDA Europe, there are currently several supporting factors for gold, including a combination of a weak US dollar and low bond yields.
Gold is also receiving additional price support from the growing demand of central banks for the precious metal, with Brazil and India being the latest to increase their official purchases of gold. This provided a counteraction to speculative pressure on the precious metal. In turn, gold prices recovered to the range of $ 1,780 per ounce, which could serve as a catalyst for additional coverage of short positions from trend followers.
