XAU/USD. 6 months of falling. What next?

In our last review, at the end of August, we recommended Sell Gold. The results exceeded all expectations: the downward trend not only continued, but also received new impetus, as a result of which the rates dropped to $1,822. This comes as the dollar is expected to strengthen as the Fed plans one more rate hike this year. At the same time, Treasury yields have risen, as risk appetite increased. Macroeconomic reports also boosted the dollar as economists noted a strong labor market and rising business activity.

The focus remains on the employment market this week and US inflation next week. Volatility should not be high. In fact, the fall in gold has been going on for 6 months. Most technical analysis tools indicate further sales, but we draw attention to the fact that the rates have been in the oversold zone for a very long time according to RSI and MACD oscillators, and the decline has slowed down very much. We believe that consolidation and possibly a price correction is underway. In any case, after the price dropped from $2000 to $1823, Buys no longer seem so reckless and risky. The time is coming when investing in gold can be considered effective and rational. According to our forecasts, in just a few months, Gold may again test the 2000 level, and perhaps surpass it in 2024. Therefore, our choice for today are the deals to BUY.