Can gold price tackle $2,000 next week? Here's how that can happen

3.29.22 - Can Gold Tackle $2,000 Next Week?

Gold last traded at $1,918 an ounce. Silver at $24.78 an ounce.

NEWS SUMMARY: Precious metal prices slipped on profit-taking amid hawkish Fedspeak, and despite a sharply weaker dollar. U.S. stocks rose amid falling oil prices as traders monitored potential progress in Russia-Ukraine negotiations.

Kitco--"After another solid week of gains, gold could be ready to take on the $2,000 an ounce level next week. But there are a few technical elements that need to come together for that to happen.

Gold was able to advance more than 1.3% on the week despite a massive surge in U.S. Treasury yields, triggered by markets betting on a more aggressive Federal Reserve. This comes after Fed Chair Jerome Powell signaled a possibility of 50-basis-point hikes at upcoming meetings in May and June.

'Higher yields are typically negative for non-interest bearing gold, but for now, the ongoing divergence between the two asset classes highlights the market's newfound sensitivity to inflation and the need to buy any/all real assets (including gold) as a hedge,' said MKS PAMP head of Metals Strategy Nicky Shiels.

There is also a growing concern that the yield curve will invert. The relationship analysts pay close attention to is the 2-year and 10-year Treasury yields.

'Typically, when you see an inversion of the yield curve, it projects a strong possibility of some kind of a recession further out. Markets are expecting to see weakness in the next two quarters. We already had one of the worst Januaries on record for equities. And gold has been making higher lows and higher highs. And it could push back up to $2,000,' said Blue Line Futures chief market strategist Phillip Streible."