The Federal Reserve is poised to slow the pace of rate hikes next month and through 2023. As a result of this, the gold price started to show signs of rising again. That’s why individual investors get much more excited about gold. It also shows more interest in the precious metal.
“Gold price will remain flat until Fed decision”
However, according to the latest Kitco News Weekly Gold Survey, Wall Street analysts are not convinced that gold is ready to explode. Most analysts expect prices to trade sideways in the near term. Bob Haberkorn, senior market strategist at RJO Futures, says a new catalyst is needed to push prices above $1,800 as interest in gold rises. Therefore, Haberkorn expects prices to move around current levels. In this context, the analyst makes the following statement:
Everyone is focused on the Fed and how high interest rates will rise. I think the gold price will remain quite horizontal until the Fed decision. So gold will be a boring market until then.
What does the gold price survey show?
This week, 16 Wall Street analysts voted in the Kitco Poll. Among respondents, seven analysts (44%) remained neutral on gold in the near term. At the same time, six analysts (38%) are expecting a bullish next week. Three analysts (19%) predict that prices will fall further.
Meanwhile, 1,054 respondents voted in the online Main Street poll. Of these, 667 (63%) expect gold to rise next week. Another 253 (24%) say prices will be lower. 134 voters (13%) remained neutral in the near term. There is an extreme rise among individual investors. In addition, this week’s survey turnout was at its highest level since the end of September.
“The price of gold seems to be around the corner”
cryptocoin.comAs you follow, the mixed outlook for gold emerges as prices end the shortened trading week at the neutral zone of $1,750. Along with the Federal Reserve’s monetary policy, some analysts say they are currently sitting on the fence to see how US dollar flows will affect gold prices.
Analysts point out that the US dollar index is trading at a critical pivot point around 106 points. They also state that further weakening would be positive for gold. Colin Cieszynski, chief market strategist at SIA Wealth Management, says gold continues to rise as it expects the US dollar to peak. Based on this, the analyst makes the following statement:
Gold seems to be around the corner as US treasury yields and the US dollar retreat. This makes its role as a store of value come to the fore again in turbulent times.
“Gold is now ready for the next lower leg”
However, other analysts remain unconvinced that the US dollar is bearish, especially as expectations that the Federal Reserve will raise interest rates above 5% early next year remain firmly in place. Marc Chandler, managing director of Bannockburn Global Forex, comments:
I expect higher interest rates and a stronger dollar to keep gold testing $1,720-1,730 in the cash market. Momentum indicators still point south. Also, I think we only saw the first stage down. After a small splash, the gold is now ready for the next lower leg.
“Gold needs rest”
Adrian Day, head of Asset Management, highlights the solid gains the precious metal has seen since the start of the month. He says some consolidation in gold will be healthy after that. Day explains his views as follows:
Gold needs rest. Without any new developments, gold is probably relatively unchanged next week. As we approach the next Fed and ECB meetings in mid-December, the market will look for signs of a slowdown or even a pause in tightening. This will cause gold to rise again.
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