ANG Traders: There is still room for gold to rise to $ 1,900, but it’s too early to bounce and keep an eye on this major US event | Gold price_Sina Finance_Sina.com

Original title: ANG Traders: Gold still has room to climb to $ 1,900, but it’s too early to rebound

FX168 Financial News (Hong Kong) News Wednesday (Dec 2) Asian market afternoon, spot gold fell under short-term pressure, now trading slightly below US $ 1810, yesterdayGold priceIt went up by nearly $ 40 and passed the 1,800 mark.

The strong rebound in gold yesterday is closely related to the trend of the US dollar. The US dollar fell to a low of over two and a half years on Tuesday as expectations of further US fiscal stimulus and a solid recovery in the global economy boosted investors’ risk appetite.

Edward Moya, senior market analyst at OANDA, said: “We are seeing gold prices return to the $ 1,800 an ounce level, largely related to weak dollar trading.”

As the price of gold has risen above US $ 1,800, according to a trading company, the price of gold may still have room to rise below the support of a weaker US dollar.

An ANG Traders analyst said in a recently released report,They expect the price of gold to rise to $ 1,900 as the price of gold bounces off the key support level of around $ 1,770 (the 50% retracement level from the March low to the all-time high in August).

While there is still room for a rise in gold prices in the short term, ANG said the medium-term outlook does not look so bright.

Analysts said: “Over the medium term (6 months), gold may weaken, but after that it may enter a long-term bull market.”

They pointed out that the biggest risk to gold is still the dollar.

The analyst pointed out in the report: “The trend of gold and the US dollar is similar to that of 2000; the US dollar is at the lower end of its trading range, while gold is at the highest point. In the medium term, the US dollar appreciates, just like in 2000, perhaps Depress gold in a few months until the economy improves and inflation expectations pick up, prompting the dollar to return to a bear market and l ‘gold to return to a bull market “.

However, one thing may warn about ANG’s prospects. They pointed out that the US government could shut down, to the benefit of gold.

The US Congress has been tested again and politicians are racing to reach an agreement to finance the government. Most federal agency funding will expire on December 11th.The final vote on this issue in Congress could be held near the December 11 deadline.

ANG said: “The closure of the US federal government in 2018-2019 (the longest closure of the US government in history) pushed gold up and depressed the US dollar.”

Starting this week, the US Congress has started two-week negotiations to discuss how to prevent the government from falling into a closure. This is the first major test for the two parties in the United States since the election.

According to Reuters, progress was made in allocating approximately $ 1.4 trillion in spending before the end of the current fiscal year, September 30, 2021. However, there are still some subtle details that need to be resolved.

If the current Congress fails to reach agreement on this, the next Congress to be held in January next year will have to clean up the chaos in the weeks before Biden is sworn in.