RLinda ! GOLD-> The price heads toward 2000, then toward 2100

19 Mar 2023

Gold is strengthening strongly on the back of fundamentals and reaches $1988 per ounce. The price is making the biggest rally and breaking through important levels. What to expect from the price in the coming week?

The biggest banking crisis since the Great Financial Crisis of 2008 proves once again that gold is the ultimate safe haven asset.

The gold market rallied as prices posted their best week in three years amid the banking sector's decline. Analysts are not ruling out the possibility of testing the $2,000 an ounce level next week as markets await the Federal Reserve's monetary policy meeting scheduled for Wednesday.

Markets are coming to the conclusion that the Fed will go for another 25-bp rate hike and then possibly hold off for a while and see what happens. From a gold perspective, given the disruption in the banking system and the willingness of the U.S. Treasury Department to help, we may get conditions that will allow inflation to linger at a higher level. That's good for gold.

If things suddenly improve over the weekend, which is doubtful, gold is likely to see price weakness



From a technical analysis point of view, gold is looking very good towards 2000.

• The price breaks one of the key resistance levels of 1981 and passes the liquidity zone.
  
• Last week's trading session closed at +6.5%, which is quite a high result on the back of increased interest from investors.
  
• It might continue rising on Monday, as potentially, the price movement is not over yet, which the closing price tells us about.
  
• If the price makes a false-break-down of 1981 and forms a local consolidation below the level, there will be a probability of the price drop to 1960 and 1920.
  
• If the price breaks through the resistance of the local level 1988.355, it will go to 2000, where higher volatility is possible.
  
• The price forms movement within the framework of the fifth wave of the Elliot, after the fourth correction wave was stopped at 0.618 Fibo (1816), thereby there is a potential for growth towards $2103 per ounce (renewal of last year's high of 2070.
  
• On the background of strong fundamentals, it could come very soon.
  

Regards R. Linda!