The solid bearish sentiment in the gold market indicates that prices are not yet ready to rise. However, some analysts are watching the sector as an attractive counterplay for gold forecasting, where prices have near bottom potential.
Gold forecast for next week is $1,811
The Kitco Weekly Gold Survey shows Wall Street analysts continuing a strong bearish trend on the precious metal next week. There is a bearish trend in the market, although there is no clear majority among individual investors. The survey reveals that it was the period in which individual investors looked at gold the most negatively since the beginning of September. In a new feature featured in this week’s survey, individual investors were asked where they saw prices by the end of the week. Accordingly, the average gold forecast for the next week points to $1,811.
downward view, cryptocoin.comAs you follow, it comes with gold prices completing the fifth week in negative territory. Persistent high inflation raises expectations that the Federal Reserve will continue its aggressive ‘longer higher’ monetary policies, according to analysts. This continued shift in the Fed Funds rate pushes short-term bond yields to multi-year highs and creates new momentum in the US dollar.
What does the gold forecast survey show?
This week, 20 Wall Street analysts took part in the Kitco Gold Survey. Among the participants, 13 analysts (65%) were down on gold in the near term. At the same time, two analysts (10%) are bullish for the next week, and five analysts (25%) predicted that prices will move sideways.
Meanwhile, 596 votes were cast in the online polls. Of these, 230 (39%) expected gold to rise next week. Another 253 (42%) said it would be lower, while 113 voters (19%) remained neutral in the near term.
“Then we will see the gold move!”
Adam Button, head of currency strategy at Forexlive.com, says the Federal Reserve is more likely to raise interest rates to 6% this year. He states that this may suppress gold in the near term, but still likes the precious metal as a long-term investment. While recession fears seem to have eased for now, Button notes that the threat has likely been delayed until early 2024. He adds that at some point, high interest rates will cool the economy. In this context, the analyst makes the following statement:
If the Fed actually goes to 6%, that means it can cut 600 basis points later. This is good for gold. It will be a great time to own gold, now is not the time. At some point inflation will peak and then we will see gold move.
“There is no bullish momentum in the short term”
Phillip Streible, head of market strategy at Blue Line Futures, says he expects further increases in interest rates will eventually lead to aggressive cuts. However, he adds that in the near term, the precious metal lacks a short-term catalyst to create any bullish momentum.
While $1,800 may seem like a line in the sand for individual investors, some analysts warn that prices could fall. Many are watching to see if the support can hold $1,785, which represents the 200-day moving average. At the same time, some analysts continue to see lower prices as an upside opportunity. Last week, Marc Chandler, managing director of Bannockburn Global Forex, said he liked the idea of buying gold by pulling back to $1,800. Chandler reiterates this stance this week, making the following assessment:
According to some media reports, even though demand from central banks is increasing, gold is no match for the rising US interest rate and stronger US dollar environment. The yellow metal slumped to new year lows, falling just under $1,812 ahead of the weekend. I still like the buy-with-a-buy strategy suggested last week near $1,800. I expect more convincing evidence to begin next week that Jan’s economic strength is a chance with softer auto sales and service ISM.
What is the rationale for the bull gold forecast?
Michele Schneider, director of trade education and research at MarketGauge, says gold is bullish as inflation and geopolitical uncertainty are bullish factors that help prices hold support at significant technical levels. In this regard, he makes the following statement:
Gold is testing the bottom of its bullish cycle for many fundamental reasons, including a surge in its futures and major geopolitical headwinds to support the price.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram And YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.