SAFAKNA TURKEY – While purchases of gold by individual investors around the world have accelerated since the beginning of the year, gold ETFs have declined. Experts say: “If investor interest increases, the rally will continue.”
In the US, an ounce of gold, which entered an uptrend due to lower-than-expected inflation, fell below $1,740 this week after rising to $1,785. While technical indicators point to bullish optimism in 2023, the $1,800 barrier needs to be cleared for the rally to continue in the near term. To do this, it is necessary to increase the interest of a speculative investor in an ounce of gold. Since the beginning of the year, although purchases of gold by individual investors around the world have risen strongly, gold ETFs have fallen.
WITHDRAWAL CAN OCCUR
An ounce of gold is approaching 3-month highs. Smaller rate hike signals from the Fed breathed a sigh of relief. analytics, “The strong movement in the price of gold, which began at $1.618/oz, has slowed down. The consolidation process is currently underway. This remains a strong upside catalyst in the ongoing US dollar correction.” He speaks.
However, if resistance at 1.785 is not broken again, there is still a chance of a downside in the near term. Possible pullbacks below $1,745 with support at $1,736 and $1,715 an ounce, according to FXStreet’s Haresh Mengani.
Saxo Bank analyst Ole Hansen noted that the key point is the $1,790 Fibonacci retracement level. “If there is a break above this level from the 200-day moving average above $1,805, then the real change will begin.” He speaks.
CORPORATE AND INDIVIDUAL INVESTORS VARIOUS
However, it is stated that the speculative support of investors is necessary for the rise in prices. Analysts say institutional investors are being cautious and making additional returns could be difficult. Asset size in global gold ETFs fell 12% from an annual high of 107 million ounces in April to 94 million ounces.
Gold ETFs, which traded 20 tons in November alone, have lost $53 billion since April. Individual investment, on the other hand, is strong. Demand for bars and coins, favored primarily by individual investors and central banks, increased 36 percent in the third quarter of the year to 351 tons, according to data from the World Gold Council.
BY TECHNICAL ANALYSIS
“A strong record could be achieved in the last quarter of 2023”
Experts are growing in anticipation of a rise in the price of gold next year. Rick Rule, CEO of Sprott Global Resource Investments, argues that the safe-haven demand driven by an expected recession in the global economy next year will make gold more fortunate than any other industrial metal.
ounce of gold According to Elliott wave theory and Fibonacci extension research, it is predicted that by the end of next year, the price of gold may exceed the historical peak of $2,088.
In Harry S. Wagner’s analysis, According to the Elliott wave theory and Fibonacci approach, gold could be in the range of $2181 to $2277 by the end of next year. The Elliot Wave Theory is a work developed by R. N. Elliott in the 1930s.
According to Elliott, financial markets often appear to be random, but in reality, financial markets have repeating patterns. With the help of the Fibonacci tool, after the completion of the recovery of the price of an asset, an assessment is made of how far the price of this asset can go.
What is Elliott Wave Theory?
Introduced by Ralph Nelson Elliott in the 1930s, the Elliott Wave Principle found that factors caused by human emotions, mass psychology, and social events cause market pricing to repeat in regular cycles. Thus, Elliott showed that bottom analysis in formed pricing can be predicted with special wave formations that can make it more consistent.
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