Gold prices showed signs of rebound as they climbed above the $1,800 level today. Spot gold rallied as high as $1,802 in the morning. At the time of writing, it is trading at $1,800.54. So what’s next? Here are the opinions of analysts…
Edward Moya: We are in the consolidation period
Edward Moya, senior market analyst at OANDA brokerage firm, said: “We are in a period of consolidation for gold, but ultimately I think monetary policy should be toughened and inflation concerns should be positive for the precious metal. “The earnings are pretty impressive and it surprises a lot of people… US tech stocks are favorites for many investors, which is currently reducing safe-haven demand.”
Meanwhile, StoneX analyst Rhona O’Connell said that interest in silver has increased in the professional market, which bodes well for the precious metal. It is expected that the ECB will not make any changes in policy and leave the pandemic emergency bond purchase program decision until December.
ANZ analysts: Gold prices to hit $1,850 before pullback
“We are seeing more buyers being attracted to the gold market, and this is partly what powers the narrative of higher prices,” said Nicholas Frappell, global managing director of ABC Bullion. cryptocoin.com As we reported, investors are waiting for the ECB meeting and the US Federal Open Market Committee policy meeting on November 3 for the timeline to reduce bond buying.
Gold is often seen as an inflation hedge, although lower stimulus and higher interest rates increase the yield on government bonds, reducing gold’s appeal. In a note, ANZ analysts said, “Gold’s supporting ground is waning as the Fed approaches a decision to cut a bond purchase from November and rate hikes from mid-2022. “Negative real returns and inflation risks will help prices push up to $1,850 an ounce before retracting next year and beyond,” he said.
The World Gold Council (WGC) said gold demand fell in the third quarter to its lowest level since the last quarter of 2020. However, WGC expects physical demand in major consumer India to strengthen in the fourth quarter. “Physical demand is pretty good, but gold’s support will likely depend much more on the degree and strength of investor demand,” said Frappell of ABC Bullion.
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