However, this approach has limitations. If the FED continues to reduce its securities without a corresponding decline of the overnight difference obligations, the liquidity can begin to contract. This scenario can cause downward pressure on the financial markets, which increases volatility. This delicate balance underlines the challenges of the Fed in managing liquidity while pursuing his financial tightening goals.
These liquidity conditions ensure market uncertainties that positively influence the gold market. Golden prices are above $ 2,725 broken and the next increase set to the $ 2,790 region. A decisive break above $ 2,790 could pave the way for a primary target of $ 3,000, with the potential for a long -term rally to $ 3,200.
Gold Weekly Analysis – Price Consolidation for Surge
The weekly gold graph shows a bullish structure. The price has exceeded the considerable resistance level of $ 2,075, which has been an important point of point for years. After the breakout, gold entered a consolidation phase before he started an increase. The price currently acts nearly $ 2,753, with buyers focusing at the psychological level of $ 3,000. The consistent pattern of pimples followed by consolidations suggests a strong buying momentum and a persistent upward trend.