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Gold records, what's next? Webinar on Wednesday at 19:00 p.m

Gold records, what's next? Webinar on Wednesday at 19:00 p.m

created Forex ClubApril 23 2024

From around October 2022, gold prices have been steadily rising, bouncing off the lower end of long-term consolidation. In March this year gold reached around USD 2100 per ounce, then accelerated its growth, testing historical highs. The geopolitical environment favors the continuation of the trend, but the stabilization we have observed on the gold chart in recent days raises questions about the market future of the precious metal.

Deep relaxation in the gold market

Although on Friday, April 19, the media reported on the Israeli attack on Iran, the lack of further escalation in the Middle East clearly calmed the markets. Although the scenario of a full-scale conflict seems unlikely, the exchange of fire sets a dangerous precedent that raises the threat of open conflict to a completely new level. However, the beginning of the week was associated with a deep depreciation in the gold market, which, after Friday's unsuccessful attempt to break above USD 2400 per ounce, lost over 22% on Monday, April 2. So, after a period of stronger growth, are we now facing a deeper correction?

Although a decline in gold prices cannot be ruled out in the near future, the fundamental factors behind the current upward trend should be taken into account. Central banks, which purchased 23,3 tons of the valuable metal last year, were responsible for 2023% of the demand generated in 1037,4. Gold is purchased almost exclusively by central banks of emerging economies - this is particularly visible in the case of China, where the People's Bank of China has been making new purchases continuously for 17 months. The Chinese gold rush concerns not only the authorities, which are increasing gold reserves at the fastest rate in the world, but also local investors, whose increased interest in gold led to a temporary suspension of trading in one of the "gold" ETF funds in early April.

About the gold market, next Wednesday, April 24 at 19 p.m, XTB analyst Michał Stajniak, CFA will speak at the free webinar.

Will gold return to the USD 2100 area?

Looking at the gold chart from the perspective of technical analysis, it should be noted that the price of the metal has remained in wide consolidation between USD 2020 and 1680 per ounce since mid-2080. The dynamic breakout in the gold price that we observed in early March may be the beginning of the next phase of growth - however, there is a risk of the price returning to around USD 2100 in order to test the integrity of the new trend.

Take part in a free online meeting and find out:

  • What are the reasons for high gold prices?
  • What will further market uncertainty lead to?
  • What are the risks that a high commodity uptrend may face?

A series of online meetings for investors

Wednesday's meeting is another in a series of thematic webinars that every investor will appreciate. Every month, XTB analysts will look at the most interesting assets on the commodity market. During the thematic online meeting, both the fundamental situation of the selected market - natural gas - will be discussed. oil, gold, wheat and others - as well as its technical side.

Can't attend the webinar? Leave your email address on the event page, and you will receive the recording of the entire webinar directly to your email inbox.

About the host

Michał Stajniak xtbMichał Stajniak - Raw Material Market Analyst in XTB. It places particular emphasis on the linkages between the behavior of commodity prices and the currencies of economies heavily dependent on exports of commodities such as oil, iron ore, gold and powdered milk. He is the author of frequent comments comparing commodity price indices with currency pairs such as AUDUSD, NZDUSD, USDCAD, USDNOK, or EURNOK. He represents XTB in the media (including TVN24 BIS, Polsat News, TVP Info, Bankier TV or Onet TV) and is the author of articles in the financial press such as Parkiet, Puls Biznesu and Dziennik Gazeta Prawna. He is a practitioner of the stock market and the derivative market. In his approach, he values ​​fundamental analysis above all, but often uses Fibonacci levels to determine the demand and supply zones needed in a Price Action strategy. A graduate of Quantitative Methods in Economics and Information Systems at the Warsaw School of Economics.

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