Gold prices have risen steadily this week. Following the economic data announcements, the price of the shiny metal increased. But after last month’s strong and sudden moves, the precious metal’s price action was more steady and less dramatic.
Individuals are bullish, analysts are neutral
cryptokoin.comAs you follow from , gold prices are bouncing back from the $2,000 level. The latest Kitco Weekly Gold Survey shows retail investors remain overwhelmingly bullish heading into next week. Exactly the same proportion of market analysts switched to a neutral assessment of gold’s near-term prospects. 12 Wall Street analysts voted in this week’s Kitco News Gold Price Survey. As with last week, three experts (25%) expect gold prices to rise next week. This week, only 1 expert (8%) predicts that prices will fall. The overwhelming majority, 67%, remained neutral on gold for the coming week.
Meanwhile, participants cast 595 votes in Kitco’s online polls. Market participants were even more optimistic compared to last week’s survey. 394 retail investors (66%) predict that gold will rise next week. 125 people (21%) expect a decrease. The remaining 76 (13%) remained neutral on the near-term prospects of the precious metal.
Adrian Day: This will be the trigger gun for gold prices!
Adrian Day, Chairman of Adrian Day Asset Management, expects gold prices to be little changed over the next week. In this context, Day makes the following assessment:
Following the recent rise, gold is vulnerable to bad news. However, medium-term fundamentals are very strong. At some point, the Fed and other central banks will reduce tightening before inflation is tackled. This will be the firing gun for gold. But this has not happened yet.
Daniel Pavilonis expects long-term consolidation
Daniel Pavilonis, Senior Commodity Broker at RJO Futures, points out that geopolitical risks have decreased. The analyst therefore predicts a long-term consolidation period for gold prices. In this regard, Pavilonis makes the following comment:
We are in the upper band of this trading range that we have been in for several weeks. We probably won’t see any more interest rate increases. We may probably see some interest rate cuts in May next year. But I doubt this will happen. I think we will stay where we are for a while longer. (…) I predict we will stay where we are, trading in this $40, $50, $60 range.
Everett Millman: Gold market will focus on interest rate cuts!
Gainesville Coins Chief Market Analyst Everett Millman says gold investors’ attention is shifting from geopolitics to macroeconomics. The analyst explains his views on this issue as follows:
I think we are seeing a shift in focus of the gold market away from the war premium that has certainly driven gold higher in recent weeks. I think this is becoming less of a central concern for gold prices. Additionally, attention is now shifting more to the macroeconomic picture and, in particular, what Fed policy will be. (…) The gold market will focus on how long it will take for interest rate cuts to come. (…) In my opinion, this means a period of sideways movement or consolidation for gold prices until we get a clearer picture of economic conditions.
3 analysts are neutral on gold prices
Ole Hansen, head of commodity strategy at Saxo Bank, predicts a big move for gold in the near term. So the analyst said, “I was very lucky to hit the bullseye last week. “I now expect additional consolidation next week, so my forecast is neutral.” says.
Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, is also neutral on gold for the coming week. “My reasoning is that between the usual end-of-month decline in economic news and next week’s U.S. Thanksgiving holiday, markets will generally be quieter over the next ten days,” the analyst said. says.
Bannockburn Global Forex General Manager Marc Chandler also has a neutral outlook for the coming week. The analyst draws attention to the following levels for gold prices:
Gold bottomed at around $1,931 in the spot market on Monday. It reached almost $1,993.50 today ahead of the weekend. The main factors seem to be the decline in US interest rates and the dollar. It’s not inflation, but the decline in inflation reduces interest rates and puts a foot under the dollar. (…) This could cause the yellow metal to consolidate. I see initial support in the $1,970-75 region.
On the rise under Darin Newsom and Jim Wyckoff
Barchart.com Senior Market Analyst Darin Newsom is bullish on gold’s prospects next week. According to the analyst, the short-term uptrend in gold prices strengthened last week.
Kitco Senior Analyst Jim Wyckoff also expects gold prices to rise next week. “The graphics have become friendlier,” Wyckoff said. Additionally, U.S. monetary policy has also been bullish following this week’s moderate inflation reports.” says.
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