GOLD PRICES MAY SOON REVERSE DIRECTION
Although there was an upward movement of up to 1757 in Ounce Gold prices due to dollar assets that had a weak overall last week, we saw that this price movement could not be permanent. Statements from Fed Chairman Powell that the US economy will begin to grow much faster and that they expect employment to accelerate have triggered a positive perception towards the US economy. Thus, the risk appetite in the markets increased following the VIX index, which declined to 16.92 below 17.00 for the first time since February 2020. The fact that the producer price index, which increased significantly above the expectations, brings inflation concerns back to mind, triggers a sellers trend on the US indices. Thus, with the effect of the exit from the safe ports, Ounce Gold prices were reduced to 1725 levels.
If we refer to the image in the US 10-year bond yields, which have been deteriorating for a while, although the maximum withdrawal margin has reached around 1.65 percent, the high movements that the general view maintains continue to press the Ounce Gold side. If we look at the US side, while the first trading day of the week was quiet in terms of data flow on the US side, the consumer price index for March, which will be announced today, is in the attention of the markets.
After all these developments, the parity, which climbed above the 1745 level, has the potential to withdraw in the new week, but the decreases may be limited due to the preservation of the image above the 1725 level. Especially in the continuation of the image above this level, the potential for recovery in the parity may gradually reach the resistance thresholds of 1745 and 1765. However, in a thaw below the 1725 level, 1706 remains our first support threshold. Below this level, we follow the decreases within the framework of the support levels 1685 and 1660.