Gold has traded higher and in a tight range this week. It frequently tested the $2,000 psychological price barrier throughout the week. However, gold prices failed to rise above this barrier decisively. However, Wall Street analysts and market players are increasing their bullish bets.
Bulls gain strength in gold price survey
cryptokoin.comAs you follow from , gold is on the doorstep of $2,000. The latest Kitco Weekly Gold Survey shows that retail investors’ bullish sentiment remains the same as the previous week. Market analysts are currently neutral and bullish on the yellow metal’s performance. There are almost no bearish forecasts among analysts. 15 Wall Street analysts voted in this week’s Gold Survey. Nine experts (60%) expect gold prices to rise next week. Only one analyst (7%) predicts that prices will fall. The remaining five (33%) remained neutral on gold for the coming week.
Meanwhile, participants cast 701 votes in Kitco online polls. Sentiment was about the same as last week’s poll. 446 retail investors (64%) expect gold to rise next week. Another 157 people (22%) predict a decline. The remaining 98 respondents (14%) remained neutral on the precious metal’s near-term prospects.
Adam Button: This is great news for gold!
Adam Button, chief currency strategist at Forexlive.com, says he believes Friday’s soft nonfarm payrolls report marks the end of the Fed’s rate hike cycle. He also notes that it’s very bullish for gold to remain around $2,000 even as safe-haven trading fades. The analyst shares the following assessment:
I think it’s pretty clear that gold is not supported by further tensions. It followed a stable course. If you look at oil for comparison, oil is down four or five dollars this week. We did a ground attack and nothing happened, but the gold remained there. The geopolitical premium has exited gold and gold is still at $2,000… The gold market can see Fed rate cuts on the distant horizon… I think the message from the market this week is that the Fed is done. And that’s great news for gold.
Adrian Day: Gold prices will rise because…
Adrian Day, President of Adrian Day Asset Management, also predicts that gold prices will rise next week. Day explains the basis for this prediction as follows:
The ongoing Israeli war, as well as bond market difficulties and a hesitant Fed, will likely push gold prices higher. Potential fly in the ointment: if central banks, which had re-supported gold prices by increasing purchases in the third quarter, backed off, even briefly, this would lead to short-term weakness.
Darin Newsom: He needs to get past this level for more!
Barchart.com Senior Market Analyst Darin Newsom sees additional gains for gold next week. Newsom says the following on this subject:
Newsom’s Rule #1: Don’t buck the trend. The trend on the daily chart of ounce gold is still upward. However, in order to avoid a horizontal trend, it must go beyond the recent high of $2,019.70.
Daniel Pavilonis: It is possible for Bitcoin to attract interest in gold!
Daniel Pavilonis, Senior Commodity Broker at RJO Futures, notes that gold prices continue to make successive higher lows while sitting just around the $2,000 level. Meanwhile, Pavilonis says some of the interest in gold purchasing may turn to Bitcoin. Because he notes that Bitcoin also functions as an alternative to gold. In this context, the analyst makes the following comment:
We have seen this before when Bitcoin rose to $65,000 under the same conditions. Gold should have been well above $2,000 and that didn’t happen. So I think that makes gold lose some momentum… I think that might be what gold is trying to build right now, that $2,000 level. Once we break through this level and close above this level and confirm it, this could be the new major historical support going forward. But right now, for the next week, I’m neutral on the matter. Neutral, maybe a little lower.
Colin Cieszynski also expects an increase in gold prices
Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, is bullish on gold for the week ahead. According to the strategist, the rally in Treasury yields and the USD is over for now. Therefore, their withdrawal removes obstacles to gold. Additionally, Cieszynski shares the following comment:
Meanwhile, two wars continue. Additionally, the economic impact of higher interest rates overall could create enough uncertainty to maintain support for gold as a safe-haven play.
Marc Chandler: His next target is $2050!
Bannockburn Global Forex General Manager Marc Chandler went from neutral to bullish on the precious metal. Additionally, Chandler predicts gold will rise above $2,000 next week. Chandler makes the following assessment of recent developments:
A weaker dollar and falling interest rates in the context of rising geopolitical tensions will likely support gold. The consolidation we expected is resolved to the upside and gold is reclaiming $2,000 in the spot market. My next target is around $2050.
James Stanley expects tests above $2,000
James Stanley, senior market strategist at Forex.com, is also looking bullish for next week. Stanley explains his expectations for gold prices as follows:
We pulled back as expected for this week. But there was a really strong reaction to a support level during the FOMC. This was at $1,971 in spot, a Fibonacci note level. The bulls jumped on the offer within the first 20 minutes of the press conference and have not given up yet. I think we’ll be doing additional tests over $2,000 next week. Also, how the bulls react to this will give us more picture for EOY price action.
There is a strong upward urge!
Mark Leibovit, publisher of VR Metals/Resource Letter, sees a strong rally in the yellow metal. According to Leibovit, the decline of the US Dollar and the participation of gold stocks are encouraging for the entire sector.”
Michael Moor, creator of Moor Analytics, says that although most of the gains he predicted have been realized, the technical picture remains bullish. “Currently, we are in a bullish correction on a lower time frame against a downward move from the $2019.70 high, with possible exhaustion areas at $2002.7 and $2010.8,” Moor said. “There is a high probability of range expansion today.” says.
Kitco Senior Analyst Jim Wyckoff says that it is still possible for gold prices to reach new peaks. “The short-term technical stance is still bullish,” Wyckoff said. “Also, higher highs are possible because geopolitics are still in play,” he says.
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