Last week, world spot gold prices cooled down after a series of hot days due to the impact of the political conflict between Israel and Hamas since early October. This precious metal maintained above 1,930 USD an ounce, but did not exceed the threshold. Psychological resistance at 2,000 USD.
Kitco News' survey of 12 Wall Street analysts and 319 individual investors showed different expectations between these two groups for gold prices next week.
Contrary to the positive sentiment the previous week, most analysts predicted negative results for gold in the short term. 8 experts predict gold prices will go down and only 3 people say prices will increase next week. As for the individual investor group, more than 180 people, equivalent to 57%, expect gold prices to go up and only 28% predict prices to decrease next week.
Kitco News gold price survey.
Analysts are concerned that the commodity market in general will face pressure to reduce prices again after US Federal Reserve Chairman Jerome Powell's latest statement said that the agency may raise interest rates even higher. Next week, the US will release some economic data, including inflation index.
Colin Cieszynski, Senior Market Strategist at SIA Wealth Management, is one of eight experts who believe that gold prices will go down in the short term. He said: "The Fed Chairman's recent statement may predict US inflation figures to be higher than expected. Inflation falling more slowly than planned could put pressure on bond interest rates and the USD, causing gold to fall. more attractive".
In addition, according to this expert, Bitcoin's recent rise also raises expectations for the formation of a new ETF hedge fund. “Increased interest in cryptocurrencies may cause demand to trade gold to become more limited,” Colin said.
And Ole Hansen, Head of Commodity Strategy at Saxo Bank, is among the few optimistic about precious metals. According to him, the Fed Chairman's statement is not surprising as the US must still maintain the current tightening trend. However, he maintains the view that the Fed's interest rate hike cycle has ended and will cut interest rates from the middle of next year.
Quynh Trang
