The week started with a price of $2,050 per ounce for gold. This was due to the on-going Middle East conflict, which led to safe haven demand and speculation about imminent rate cuts. However, as the week progressed, experts reported the absence of powerful support from central banks and geopolitical tensions, leading to investor fatigue regarding gold.
According to industry experts from the latest Kitco News Weekly Gold Survey, there was a near consensus on gold prices with a plurality of respondents predicting gains for gold, while the minority expected stagnation or a decline.
The sentiment surrounding gold prices varied across experts. Colin Cieszynski of SIA Wealth Management and Sean Lusk, co-director of commercial hedging at Walsh Trading felt bearish about gold prices in the near future. On the other hand, Mark Leibovit, publisher of the VR Metals/Resource Letter, and Adrian Day, President of Adrian Day Asset Management believed gold will continue to perform based on the current context.
While the survey indicated a cautious stance on gold prices, this is in contrast to the bullish views of both institutional experts and retail traders reflected in the Kitco online poll. Sixty-six percent of retail investors predicted price increases for gold in the near future.
The upcoming week will see some considerable economic data and events such as central bank rate decisions and monetary policy decisions and reports. The impact of such events, particularly the decisions from the Bank of Japan and the European Central Bank, could provide risk for the U.S. dollar and gold prices next week. Interest rates and economic news will play a pivotal role in determining the price direction for gold.
The opinions on gold prices were fragmented, ranging from completely bullish to bearish, and some analysts switched their views from bear to bull, adding to the uncertainty surrounding gold’s near-term movements. In light of these factors, predictions on gold prices next week are mixed, and external events and news are likely to be major factors driving market movement for gold.
