Gold prices hovered within a narrow range around $2,016 and $2,025 this week, seeing only minor reactions to significant data releases and corporate earnings reports. The lack of clear consensus among institutional experts and retail traders heading into a crucial week for central banks and employment data reflects an environment of caution in the gold market.
Amid moderating inflation numbers, Adrian Day, President of Adrian Day Asset Management, believes that gold prices will be bolstered next week. He is anticipating an increase in the odds of a Fed rate hike for March, which will likely lead to higher gold prices.
Darin Newsom, a Senior Market Analyst at Barchart.com, sees gold caught between opposing technical trends, complicating the outlook for gold. On the other hand, there are a few experts like Colin Cieszynski, chief market strategist at SIA Wealth Management, who are bearish on gold’s prospects for the coming week, predicting potential rallies in the US Dollar.
Amidst the differing opinions, Frank Cholly, Senior Market Strategist at RJO Futures, foresees a prolonged period of sideways price action, yet expects gold prices to remain above $2,000. He also anticipates gold price volatility around Powell’s imminent press conference.
Looking ahead, it’s not surprising that participants in the Kitco News Gold Survey continue to show caution on gold’s near-term price potential. Meanwhile, Jameel Ahmad, Chief Analyst at GTC Global Trade Capital, sees risks of a fall below $2,000 due to reversing expectations for U.S. interest rate cuts, and the likelihood of further U.S. dollar strength.
Ahmad points out that the conflict in the Red Sea and ongoing geopolitical issues present more uncertainty for gold. He believes Federal Reserve Chair Jerome Powell’s press conference is a critical risk factor for gold prices and is awaiting its outcome with caution.
Lastly, coming from the currency market, Adam Button, head of currency strategy at Forexlive.com, anticipates gold prices to remain in their recent holding pattern, reflecting the market’s re-evaluation of the path of Fed policy. James Stanley, a senior market strategist at Forex.com, remains bullish for next week.
Adding to this insightful analysis, it’s crucial to keep an eye on geopolitical events, U.S. economic data, and the Fed’s decisions, as they continue to be key drivers for gold prices in the coming week. Tight ranges and lack of clear consensus among gold experts and retail traders reflect the cautious sentiment prevailing in the yellow metal market.
