Gold price next week?

Gold price last week experienced many quiet sessions when the volatility was not much. World gold price last week fluctuated around the threshold of 1,940 USD/ounce, while domestic gold price fluctuated around 67 million dong/tael (buying in) and 69 million dong/tael (sold out).

Gold price predictions for next week, of 16 Wall Street analysts who participated in Kitco News’ gold survey, 9 people (accounting for about 56%) predict gold prices to increase next week; at the same time, only 4 people (25%) have reduced the price of gold in the near future; The remaining 3 (19%) are price neutral.

Meanwhile, out of 822 votes cast in Main Street online polls, 560 respondents (68%) still believe gold prices will rise next week; 147 votes (18%) predict lower gold prices, while the remaining 115 (14%) are neutral.

Phillip Streible, chief market strategist at Blue Line Futures, says he likes the idea of ​​buying gold when prices fall. He remains skeptical that the Fed will be able to follow through on its plan to raise rates seven times this year.

“Fed says it will still depend on data and if actual data doesn’t improve then Fed will have to adjust,” said Phillip Streible.

Confidence in gold comes after the Fed raised interest rates by 25 basis points and laid out plans for the rest of the year. The Fed has lowered its growth forecast and raised its inflation expectations for 2022. At the same time, it sees the possibility of seven rate hikes this year.

While the Fed looks set to begin a new cycle of fiscal tightening, many analysts believe that, with inflationary pressures steadily increasing, real interest rates will remain in the negative territory.

However, looking beyond monetary policy, some analysts believe that gold will suffer from a decline and the flow of safe-haven demand in the near term. Adrian Day, President of Adrian Day Asset Management, said that in the current environment, he sees lower prices in the near-term, but the long-term uptrend remains intact.

“What happens to gold next week depends largely on the new move in the Russia-Ukraine conflict. Gold’s war value premium will continue to decline, but the long-term trend from September remains bullish on monetary factors“. Adrian Day said.

Gold could still consolidate further as investors adjust to higher prices, some analysts note.

Colin Cieszynski, Market Strategist at SIA Wealth Management, said he sees gold in a less volatile position in the near term.

“Gold has had a major rally and a major correction over the past few months and it is entering a range where it might pause to digest recent market moves, perhaps from 1,920. USD to 1,980 USD“, said Colin Cieszynski.

According to Edward Meir, an analyst at ED&F Man Capital Markets, if there is a ceasefire or some kind of agreement is approved in the peace talks between Russia and Ukraine, gold could fall quite quickly.