What is the outlook for gold after the ups and downs? bullish sentiment still prevails in gold prices next week or return to the $2,000 mark
FX168 Financial News Agency (North America) News Kitco’s Golden Week survey results released on Friday (August 14) showed that after the market price adjustment described as very healthy, gold is expected to rise further next week, Wall Street and major market participants All expect gold prices to rise next week.
In this week’s price adjustment, the price of gold fell by nearly $200, from $2060 per ounce to below $1880 per ounce. Since then, the price of gold has been stable at around $1950 per ounce.
The strong demand and technical positioning of gold indicate that bullish sentiment has not changed, which means that gold may reach $2,000 as early as next week.
“What we have seen is a very good correction. Before that, the market was a one-way street. Looking at the environment we are in now, the bull market is not over. The price of gold should return to above the $2,000 line. Before the US election, We will continue to be bullish,” Afshin Nabavi, senior vice president of precious metals trader MKS SA, told Kitco News on Friday.
The latest Golden Week survey results show that Wall Street analysts are clearly bullish on gold, and gold prices are expected to climb next week. Among the 13 Wall Street professionals who participated in the survey, 8 (61.5%) believe that the price of gold will rise another two (15.4%) expect the price to fall the last three (23.1%) predict that the price will show a neutral trend.
A similar situation has appeared in the main street, and ordinary investors are still bullish on gold. The online survey received a total of 2407 votes. Among them, 1439 (59.8%) expect the price of gold to rise next week another 527 (21.9%) expect the price of gold to fall, and another 441 (18.3%) hold a neutral attitude.
The results of last week’s survey were mixed. Half of the people predict that the price will fall, and their judgment is correct. On Friday, New York gold futures ended the nine-week-old trend: COMEX December gold futures closed down nearly 1.1% to 1949.80 US dollars per ounce, a cumulative decline of about 3.9% this week, the first weekly decline since June 5.
Blue Line futures chief market strategist Phillip Streible said that many investors in the gold market this week bought when it fell.
“I am optimistic about the rise in the price of gold. Many participants are waiting for the callback, and they got the answer this week. US$1,900 and US$1,874 are good support levels. In the upward direction, pay attention to the above US$2000. When the price of gold reaches 2000 When it comes to the US dollar, people will agree more with this price point, and because of fear of missing the opportunity, they will start to re-enter the market.”
Kevin Grady, president of Phoenix Futures and Options LLC, said that the macro environment is still very favorable for gold.
“Nothing has changed. All the reasons for the rise in gold are still valid-the huge liquidity provided by the central bank and the low interest rate environment,” Grady said. “We have not seen a large-scale liquidation of open positions. This is a sign of bullish sentiment in the market. This shows me that these people are fighting in the long-term and will not be driven out, at least at current prices. will not.”
Richard Baker, editor of the Eureka Miner Report, said, “The rapid rebound of gold prices above US$1,900 has led many analysts to believe that there is room for further growth in gold prices. The rebound in gold prices from a one-week low of US$1874.2 suggests that there will be more gains in the future. It’s a straight line, but I believe the price of gold may exceed US$2,200 in 2020.”
There was also a bearish voice this time, and some analysts pointed out that the huge interest in gold these days has made trading overcrowded.
“In the past few weeks, the number of retail accounts has skyrocketed… When we saw a fall-the rise in speculative activity has not subsided, they are buying on dips. In our opinion, some of the buyers who bought on dips prematurely Fragile. Both nominal and real interest rates have begun to rise, and the current situation is pushing gold prices higher, but buyers continue to buy,” said Daniel Ghali, commodity strategist at TD Securities.
Ghali pointed out that the overall outlook still has a lot of support for gold prices, but for now, the $1850 level is the starting point for gold prices to become attractive again.
Those who hold a neutral view of next week’s trend said that it will take some time for the price of gold to consolidate and trade sideways before embarking on a clear path.
“After the stock market rose sharply last week and the profit this week ended, I have a neutral attitude. We need to pull back a bit and go sideways,” said John Weyer, co-head of Walsh Trading’s commercial hedging department