Gold, which remained horizontal in the first half of the week, experienced a strong rise after the Fed’s interest rate decision. This news pushed gold prices above $2,000. The shiny metal continued to trade above this level on Friday afternoon.
Market participants are bullish, analysts are on the sidelines!
cryptokoin.comAs you follow from , gold started to rise after the Fed sent the doves into flight. The latest Kitco Weekly Gold Survey shows that the vast majority of retail investors expect gains for gold next week. Market analysts maintain a neutral stance on the near-term prospects of the yellow metal. 12 Wall Street analysts voted in this week’s Gold Survey. Analysts agreed in perfect balance. Three experts (25%) expect gold prices to rise next week. Another three analysts (25%) predict that prices will fall. The remaining six experts (50%) remained neutral on gold for the coming week.
Meanwhile, participants cast 594 votes in online surveys. Market participants continue to maintain their bullish outlook on gold prices. 379 retail investors (64%) expect gold to rise next week. Another 120 people (20%) predict that prices will decrease. 95 respondents (16%) remained neutral on the precious metal’s near-term prospects.
Adrian Day: The market reacted with irrational enthusiasm!
Adrian Day, President of Adrian Day Asset Management, maintains his short-term bearish sentiment on gold prices. According to Day, the market reacted with irrational enthusiasm to expectations of near-term interest rate cuts. In this context, Day comments:
Yes, the Fed stopped tightening. But some other central banks perhaps did not stop it, and yes, the Fed and other banks will cut interest rates next year. But not as quickly or as dramatically as the market expected. I expect a pullback next week. However, I think the long-term upward trend will continue. A year from now everything will look much more positive. Be patient!
Adam Button: Everything is in order for the gold price to rise
Adam Button, head of currency strategy at Forexlive.com, is bullish on gold. Button says everything he sees points to higher gold prices next week. “The Fed is turning, the dollar is falling and seasonal trends are great,” Button said. What’s not to like?” says.
Frank McGhee: Gold has completed its upward trend
Frank McGhee, chief precious metals trader at Alliance Financial, thinks gold’s recent rally has run its course. According to McGhee, this rally will end in the near term. McGhee says the overall stock and interest rate rally is way ahead of itself. The analyst still predicts it will go lower. McGhee predicts that gold prices will fall below $2,000 in the near term. In this regard, he comments as follows:
I think before this, the last few days, you’ve seen a lot of where the market itself wants to go, and I think if you don’t get any immediate follow-through against the swing highs here, you’re going to start to see people say ‘what the hell are we doing here?’ I still think we will at least test $1,950 in gold futures. So it will probably go to spot $1,930.
Sean Lusk: It will hold above $2,000 because….
Sean Lusk, co-director of commercial hedging at Walsh Trading, says that even if markets are overly optimistic about the timing of the rate-cutting cycle, the decline in U.S. dollar and Treasury yields combined with strong seasonal demand for physical gold will keep prices higher in the near term.
Lusk states that seasonal factors and central bank purchases should support gold prices at high levels. Additionally, Lusk notes that markets will begin receiving holiday data around the second week of January. “Then we will have a better understanding of where things are going and how to prepare ourselves for the next move in the market,” says the analyst. For the next week, he believes gold will have enough favor to keep prices at their current highs. In this regard, he shares the following evaluation:
I think we will hold above $2,000. Maybe we can hammer it for a few days next week and get some profit out of this move. But given the Fed’s dovishness, it will be well supported going forward.
James Stanley expects gold price to rise
James Stanley, senior market strategist at Forex.com, predicts gold prices will rise further next week. “Last week I became bullish on my expectations for the FOMC,” Stanley said. “I also think there may be a little more strength behind this theme going into EOY,” he says.
Mark Leibovit prefers to remain neutral
Mark Leibovit, publisher of VR Metals/Resource Letter, says he’s neutral here. However, he states that he is holding on to the positions added in the last shakeup. The analyst said, “I am watching the small bounce in the Dollar today (Friday). “It’s too early to tell whether this is anything more than a sudden jump.” says.
Darin Newsom stands with the bears!
According to Barchart.com Senior Market Analyst Darin Newsom, the situation is a bit complicated. The analyst states that he will side with the bears next week as well. Newsom explains his stance as follows:
While the short-term trend for February gold turned upward last Wednesday, oddly enough as the FOMC meeting ended, it appears to be heading towards a possible Wave 2 sell-off early Friday. If so, the downside target area reaches up to $2,003. This is roughly the 80% retracement level of Wave 1.
Jim Wyckoff: Gold will move in a range with a bullish trajectory
Kitco Senior Analyst Jim Wyckoff predicts that gold prices will remain in a range next week. However, he expects it to trade with an upward trend. “Easier Fed is flat to bullish with more bullish charts,” Wyckoff says.
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