Gold price forecast for the last days of 2020

An ounce of gold tested resistance at a critical psychological level of $ 1,900 at the end of last week, but eventually closed below that level. The price of an ounce of gold in the New York Mercantile Exchange fell by one dollar and 50 cents, or 0.1 percent, to close at 1888 dollars and 90 cents, but increased by about 2.5 percent for the whole week.

Gold rose about $ 70 last week as US Federal Reserve Chairman Jerome Powell said he would continue to buy bonds until the labor market recovers and inflation rises to 2 percent.

“Gold targeting to reach $ 1925 by Christmas is still achievable,” said Peter Hogg, director of global trading at Kitcommatals. Powell has made it clear that the strengthening of monetary policy will not happen until 2023, and that the easing of monetary policy will continue for at least two years.

Hogg is optimistic about the rise in gold prices until the global economy returns to normal in the third quarter of next year. “From a financial point of view, central banks will continue their monetary easing policy, which will mean an increase in deficits and a weakening dollar,” he told Kitconews. In such an atmosphere one should be optimistic about precious metals.

The two factors that will be of interest to the market this week will be the financial stimulus measures of the United States and Briggs.

According to ING forex strategists, investors are still waiting to see if politicians in Europe can reach a post-brigade deal and if the US Congress can prevent a government shutdown. The institute predicts progress in both sectors and the continued weakening of the dollar.

Hogg expects gold to meet resistance at $ 1,900 in an attempt to reach $ 1925.

Charlie Nedos, senior market strategist at Lassalle Futures Group, called the $ 1914 level a strong resistance level in this week’s trading, saying that if gold falls below $ 1877, it will be defensive.

According to Kitconews, this week the markets released the final statistics of US GDP in the third quarter, home sales, as well as the housing price index and sales of new homes in the United States. Analysts will also look at the price index for personal consumption and the statistics of applicants for unemployment benefits and ordering durable goods.