Gold Weekly Analysis: April (18-22) : $2000 is still in the eyes

The Gold Market was closed last Thursday due to Good Friday. However, the gold market has closed in bullish mode. However, there has been resistance to the current Gold Prize at the $1982 level.

Somehow if gold can break out $1972 resistance level in the next week, hopefully, it won't take too long to test $2000.

Several major central banks had raised their bank rates in the past week, but not so much impacted the gold prices because of higher inflation everywhere.

However, if the Federal Reserve raises the rate, it will temporarily negatively impact gold prices in the next month.

I guess gold will probably test $2000/2015 before raising the Fed rate. And when FED raises rates, it may drop some.

Since $2000/2015 is a high level of resistance, and if the gold price goes up to 2000, the RSI will also show an overbought, and it will be time to raise the Fed rate, then there could be a significant correction from the resistance area at $2000/2015. It could drop by nearly $1950 if the FED hike more than 50 BP rates.

As long as gold is above 1950, it still has a chance for $2000

And if the Fed raises the rate by just 25 bp next month, it's best not to expect gold to make such a significant correction. Our next target should be $2015 and finally $2050.

Russia has warned of a direct nuclear war after Finland and Sweden expressed optimism about joining NATO last week. And it would be very typical to raise the price of gold as a safe haven.

The only obstacle to gold rising is the American bond market in the current context. If the bond rate increases, the gold rate decreases. However, if inflation is too high, both gold and bonds have a record of rising together.

And since the market expectation is that the Fed will raise the rate by 50 bp next month, if the FED raises the bank rate by 25 bp, the bond market will not benefit. On the contrary, the dollar will be weak, and gold will be stronger than now.

Technically, as long as the gold price is above $1950, the tendency to test $2000 is always high.

Gold has support from the current rate of $1960. Gold tested the $1960 last week but could not sustain it.

So, for some reason, if gold is below $1960, the next support could test the $1950 level. But $1950 is significant support we should keep in mind. We might have seen a significant upward movement from the $1950 unless major accidents occurred.