Gold is once again on the brink as prices close the week below $1,650. Also, the mixed market mood is unlikely to give a clear direction for the precious metal next week.
“Gold rallies will continue to be sold until we get clarity from the Fed”
The latest Kitco Gold Survey shows that bull analysts and individual investors have a slight advantage. However, there is no dominant opinion in the market. cryptocoin.com According to some analysts, many investors continue to sit on the sidelines, waiting for a clear sign that the Fed will slow the pace of aggressive rate hikes by the end of the year. According to analysts, the Fed’s monetary policy meeting on November 2 will be the driving force behind gold next week.
For most of the summer, investors chased rumors that the Fed was close to turning around. But so far he has always been frustrated. Sean Lusk, co-director of commercial hedging at Walsh Trading, expects current market expectations to subside, similar to other market rumors. Lusk says he expects to see lower gold prices next week. In this context, Lusk makes the following assessment:
They will continue to sell their gold rallies until they get clarity from the Federal Reserve. I don’t think we’re going to get much clarity from the Fed next week. All the money printing we’ve seen in the last two years has a cost. We will feel this cost longer than most people expect. I’m watching the $1,620 area closely. A break below triggers a bearish signal to the bottoms.
What do the gold survey results show?
The results of Kitco’s weekly gold survey revealed that Wall Street is in a slightly uptrend in gold prices next week. Seven (41%) of 17 analysts surveyed expect prices to rise next week. Meanwhile, six analysts (35%) are bearish in the near term. Four analysts (24%) preferred to slide neutrally against gold.
The feeling on Main street was relatively similar. This week, 473 respondents voted in online polls. A total of 200 voters (43%) predict that gold will rise. Another 169 (37%) predict gold will drop. The remaining 94 voters (20%) expect a flat market.
“There is no obstacle for gold not to fall below $ 1,600”
The Fed’s rate hikes will continue to put pressure on the precious metal, according to Phillip Streible, chief market strategist on Blue Line futures. That’s why the analyst says he remains neutral on gold in the short term. In addition, he comments:
There is nothing stopping gold from falling below $1,600 in the near term. This is not a bold statement. But if gold goes down, I want to buy small positions. I would also consider buying silver if the price drops below $18.
“Gold is slowly turning the corner!”
Most emerging analysts have growing expectations that the Fed will slow rate hikes from December. This will support gold prices in a volatile environment. Colin Cieszynski, chief market strategist at SIA Wealth Management, said:
Technically, the yellow metal seems to be slowly turning the corner. Gold is likely to fluctuate around the Fed’s decision, which will affect the trend in the US Dollar depending on whether the Fed is more hawkish or more dovish than expected and more dovish than other central banks.
“Gold needs to stay above $1,620 for upside”
Darin Newsom, head of Darin Newsom Analysis, also expects some volatility next week. However, he adds that as long as gold manages to stay above recent lows around $1,620, it will remain in a medium-term uptrend.
