15 Analysts Announce Their Forecasts: Gold Goes To These Levels!

The threat of rising inflation is creating a significant bullish sentiment in the gold market, even as Federal Reserve Chairman Jerome Powell tries to allay these growing concerns. Earlier on Friday, gold prices hit a six-week high at over $1,800 an ounce; however, most of these gains were short-lived after Powell reiterated his stance that the US central bank was on track to begin reducing its monthly bond purchases. He added that he expects the contraction to be completed by mid-2022. Details cryptocoin.com‘in.

Gold and inflation concerns

Powell added that while there is a growing risk that supply chain problems could keep inflation pressures high through 2022, the underlying condition is to resolve supply bottlenecks and push inflation back to 2%. Prior to Powell’s comments, analysts were significantly bullish on gold, with many looking for price to test the major resistance at $1,830 an ounce. This week, 15 Wall Street analysts took part in Kitco News’ gold survey. 13% or 87% of the respondents were of the opinion that gold prices would rise. At the same time, two analysts, or 13%, remained neutral on gold in the short term. Neither analyst was bearish on gold.

Meanwhile, a total of 598 votes were cast in online Main Street polls. Of these, 360 or 60% predicted that gold will rise next week. Another 134, or 22%, of voters said they would fall, while 104 voters, or 17%, remained neutral. The precious metal is on track to close its second week with gains, even though it slumps from session highs. December gold futures were last traded at $1,797.30 an ounce, up 1.63% from last week. While some analysts are optimistic about the price of gold, they do not see the market attracting large capital until the $1,835 resistance is broken.

Ole Hansen said, “With gold rising above $1,800, you need to be bullish on gold. But I also reserve the right to be disappointed, given the lackluster performance of gold so far this year.” said. Hansen added that a break above $1,835 could create enough momentum in the market to push prices back to $2,000 per ounce.

Equiti Capital market analyst David Madden said Friday’s gold rally pushed prices above a critical downtrend from last year’s record highs. He said he saw gold return to $1,830 but did not expect this level to break. He noted that the US dollar, which has been in a strong uptrend since May, is a significant headwind for gold. He added that he does not expect this trend to change anytime soon. Madden: “The Fed is keen to tighten interest rates and this will support the US dollar.”

Is inflation increasing?

Colin Cieszynski, chief market strategist at SIA Wealth Management, said he is optimistic about gold as inflation rises. The Strategist: “We can see that central bankers are starting to step back from previous ‘temporary inflation’ statements and reduce stimulus. While the end of the paper printing batch is positive for paper money, this may take several months, so I think gold can still benefit. in the short term,” he said.

Darin Newsom, head of Darin Newsom Analytics, said he could see higher gold prices next week; However, he added that much depends on the US dollar and whether the support at 93.50 in the US dollar index will continue. Newsom: “The US dollar index appears to be approaching a possible short-term bullish reversal as it tests support at this week’s low of 93.50. “If that amount and the dollar rise, gold could peak early next week,” he said.

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