With the resistance of the precious metal against rising bond yields, the mood in the gold market is slowly shifting to the bullish side. However, some analysts warn that there is not enough momentum for gold prices to break past critical resistance levels. The latest Weekly Gold Poll shows a slight bullish trend among Wall Street analysts. However, sentiment among individual investors is balanced. The surge in optimism came after two weeks of bearish sentiment in the market. Here are the details…
What are the expectations for gold prices?
The improving outlook also emerged as gold prices saw slight positive gains throughout the week and ended a three-week streak of losses as the price found support above $1,900 an ounce. Gold futures for August delivery were trading at $1,933.30 an ounce, up 0.20 percent from last week. In the current environment, gold has room to rise in the near term, said Kevin Grady, head of Phoenix Futures and Option. However, he added that the Fed’s lack of clarity about the future path of monetary policy has kept many investors on the sidelines. The analyst said the following statements:
Gold investors are in standby mode. Between $1,945 and $1,955 there is a lot of tightness. We need to break above this area to bring some confidence to the market. We need some clarity from the Fed to do this. If they say they’ve completed the rate hike, then I think gold has a good chance of returning to $2,000.
High expectation in survey
This week, 19 Wall Street analysts took part in the Kitco News Gold Survey. Among respondents, ten analysts, or 53 percent, were bullish for the precious metal in the near term. At the same time, five analysts, or 26 percent, are in a downward trend for the next week, while four, or 21 percent, think prices will remain flat. Meanwhile, 483 votes were cast in online polls. 182, or 38 percent, of respondents think gold will rise next week. Another 181 people, or 37 percent, said prices would fall, while 117, or 24 percent, said they were neutral in the near term. According to the survey, individual investors think gold prices will rise to $1,941 an ounce by the end of next week.
What data affected the precious metal?
Ole Hansen, head of commodities strategy at Saxo Bank, said that despite 10-year bond yields rising above 4 percent, gold is in an uptrend as the market closed the week above a key initial resistance point. “It will be interesting to see if gold can find new momentum above 1930 next week. But will that force some additional vulnerabilities to close?” said. Marc Chandler, managing director of Bannockburn Global Forex, said he thinks gold prices will test the $1,955 per ounce resistance next week.
Adrian Day, who has been neutral on gold recently, sees more upside potential for the precious metal as weak unemployment data support rising expectations that the Fed is fast approaching the end of its tightening cycle. Earlier on Friday, the Bureau of Labor Statistics said that 209,000 jobs were created in June, failing to meet expectations as economists expect job growth of around 224,000. Day said the following:
While the latest US employment numbers were heralded as strong, they were actually below expectations, but the market has now settled for another rate hike this month. This is now priced in and the market may gradually regain some of the ground it has lost recently. Gold still has a long way to go to recover after the sell-off at the end of June.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow on. 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.