Published: 2022.11.25. A steady rise in the price of gold until the end of 2022?

A steady rise in the price of gold until the end of 2022? - Preview

Hoping for a slower rate hike by the Federal Reserve and easing U.S. inflation, which eases interest rate pressure, the price of gold managed to break out of the downtrend that began in early March 2022. At the same time, the momentum for growth even surpassed the momentum of the bond and stock markets.
The price of the yellow precious metal has already almost reached the technically important 200-day moving average line. Currently, it is at the psychologically important mark of $1800 per ounce. At this price level, intermediate highs were already formed in the summer, which, together with the 200-day line, now form a rather stubborn resistance. Technical data indicates that the market is overbought, at least in the short term.
Even if the interest of professional investors in gold has recently increased significantly again, as evidenced by the influx of funds into gold ETFs and long positions in gold in the futures markets, a change in the direction of the Fed is necessary for a sustainable trend reversal, and not just hope for this is.
After the unexpected Democratic success in the US midterm elections, the chances of that happening are good: Fed Vice President and Democrat Lael Brainard sits on the Fed's decision-making body, the Fed's Open Market Committee. Given the economic risks, especially for the labor market, she advocates a more moderate approach to monetary policy, which would also benefit interest-free and liquidity-sensitive gold.
Thus, there were first serious signs of the end of the interest rate cycle and, depending on the course of the economy or other events, even a turn in monetary policy.