Gold market seems a bit confused as fiyadollarsar failed to break the resistance at $1,800. At the same time, sentiment among retail investors and Wall Street analysts is showing no clear direction in the near term. Let’s take a closer look at the predictions together…
There is a bad mood among gold investors…
While sentiment has been relatively volatile over the past few months, the results of this week’s Kitco News Weekly Gold Survey show a bad mood among retail investors. Sensitivity has dropped to its lowest level in more than five months. Analisdollarser states that the gold market has been battered by various forces as the global is facing rising inflation and a slowing recovery from the COVID-19 pandemic.
At the same time, investors are trying to gauge the Federal Reserve’s next move and its impact on bond yields and the US dollar. Darin Newsom, head of Darin Newsom Analytics, commented:
From a technical standpoint, December gold is a mess. This week, December has been caught between a stronger US dollar’s decline and the rise of geopolitical turmoil.
15 Wall Street analyst gave the weekly gold price yellow forecasts!
This week, 15 Wall Street analysts took part in Kitco News’ gold survey. 7 or 47% of the participants expect the gold price to rise. There was a tie between bearish and neutral analystsdollarser, with both scenarios receiving 27% or four votes each. Meanwhile, a total of 930 votes were cast in the online Main Street polls series. Of these, 428, or 46%, expect gold to rise next week. Another 334 respondents or 36% voters expected lower levels, while 168 voters, or 18%, remained neutral.
Sentiment among retail investors is at its lowest point since March 5. The rising negative mood in the gold market comes as the precious metal sees a solid rebound after the sudden crash last week. However, the yellow metal failed to break the resistance at $1,800 per ounce. December gold futures traded at $1,784 an ounce, up 0.35% from the latest Friday.
Phillip Streible: Yellow metal does well in an inflationary or stagflationary environment
While gold has room to surpass $1,800 an ounce, Blue Line Futures chief market strategist Phillip Streible said rising deflationary threats in a weaker growth environment could limit potential gains in the near term. Phillip Streible made the following comments on the subject:
Gold does well in an inflationary or stagflationary environment. But in a deflationary environment, it’s more of a placeholder and will compete against the US dollar and equity markets.
Adrian Day: Yellow metal will rise significantly in the near future
Adrian Day, head of Asset Management, said gold could undergo some consolidation, given the recovery from recent lows. However, he added that basically the long-term picture is in an uptrend. Adrian Day made the following comments on the subject:
Next week or the next month, gold will rise significantly as more and more investors realize that inflation is not just temporary, but must have consequences for central banks frantically giving up printing too much money for too long.
Ole Hansen and Mark Leibovit share their gold prospects
Cryptocoin. com, but some analisdollarser are not giving up on gold yet. Ole Hansen, head of commodities strategy at Saxo Bank, said during the annual Jackson Hole Summit that gold has a chance to rise if Federal Reserve Chairman Jerome Powell is much more cautious about the central bank’s plan to reduce monthly asset purchases. VR Metals/Resource Letter publisher Mark Leibovit said he is cautious about gold in the short term. However, he also noted that it will bounce further from the current oversold levels.