Uncertainty about stimulus and election negotiations in the US is expected to continue to pull gold prices up.
Last week, after a volatile start, the world gold market gradually stabilized and reached the highest level of two weeks in the Friday session (October 9). At the end of the session, each ounce of spot world gold increased by nearly 37 USD to 1,938 USD.
Kitco’s survey last week with investors, analysts and bank leaders showed that gold prices are expected to increase further this week, when the presidential election of the US still contains many uncertainties. . 76% of Kitco survey participants forecast an increase in prices. 6% expect prices to decline and 18% expect prices to move sideways.
“We see short-term upside potential in a long-term downtrend. However, we need to observe more to see if this rally lasts or not,” said Darin Newsom, director of Darin Newsom Analysis.
Although the positive sentiment in the market is very strong, analysts are not sure whether this momentum will be strong enough to pull gold back to $ 2,000 in the short term. “I expect prices to go up this week, but this is really just an increase within the framework,” said Colin Cieszynski, market strategist at SIA Wealth Management. He said that only when the countries increased stimulus, the precious metal could be pulled up again.
Others believe that this is the start of a new rally. Adrian Day – CEO Adrian Day Asset Management explained that gold price going two steps and then one step back will attract investors to return. “Fundamentals are still extremely optimistic. So I think those on the outside will realize that gold is not going to fall. Then there will be a wave of buying gold,” he predicted.
Richard Baker – editor of Eureka Miner’s Report, the warning of volatility of precious metals remains high. “The US Congress is still divided on introducing the next stimulus package in the pandemic. This certainly makes gold volatile,” he said.
Ha Thu (according to Kitco)