Wall Street analysts expect 12-month gold futures to rise next week, to $1,768 per ounce.
Spot gold ended the week with a gain of more than 5%, at $1,750 an ounce. In the 12-month futures market, the price of this precious metal is having the best gain since early April 2020 and is forecasted by experts to reach $ 1,768 per ounce.
US inflation in October cooled down, helping the market to expect the US Federal Reserve (Fed) to be less aggressive when raising interest rates. In addition, the weak greenback, plus the plunge of the cryptocurrency market… are factors that help gold to break out.
Adam Button, Forexlive.com’s chief currency expert, said that all factors are currently supporting gold prices. According to him, the great pressure on the gold market in the past few months has been relieved. “Gold is likely to go higher,” he said.
Adam’s comments also coincide with the views of most Wall Street analysts surveyed by Kitco News. 12 analysts, or 63%, are optimistic about gold next week. There are only 2 opinions (11%) that gold prices turn down. Meanwhile, 5 analysts (26%) are neutral on this precious metal.
Kitco News’ online poll showed similar results. 65% of respondents believe that gold will increase in price. 22% expect gold prices to fall and the remaining 13% say the market is sideways.
Colin Cieszynski, chief strategist at SIA Wealth Management, said he is also bullish on gold’s upside as the US dollar weakens.
“The USD headwind has broken. After establishing a good level of technical support, gold has finally broken out, rallying to $1,750 an ounce this week,” he said.
However, not all analysts expect gold’s rally to last. Adrian Day, President of Adrian Day Asset Management, sees a long-term bullish bias, but he predicts a slight decline in gold prices next week.
“After the euphoria in the market last week, it’s possible that Fed Chairman Jerome Powell or other Fed spokespeople will have to come out and that could cool gold down a bit,” said Adrian Day.
Minh Anh (according to Kitco)