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Most Wall Street analysts and individual investors are bullish and predict that the price of gold will rise next week.
Kitco’s latest survey shows that investor sentiment is extremely optimistic even as analysts warn that the market will struggle with low trading volume in the last 2 weeks of the year.
“We could see strong volatility in the coming weeks. But the fundamentals of the uptrend for gold remain. The factors that drive gold prices higher in 2021 are not going to go away.” “Said Ole Hansen, Saxo Bank’s director of commodity strategy.
This week, Kitco surveyed 14 analysts, of whom 11, or 79%, forecast that the price of gold will rise next week. 2 analysts predicted that the price of gold would go sideways, only one person predicted a decrease in the price of gold.
Individual investors are also as optimistic as analysts. 1,402 people participated in Kitco’s online survey. In which, more than 1,000 people (75%) said that the price of gold will increase next week. 202 people predicted that the price of gold would decrease, 152 people believed that the price of gold would go sideways.
Sentiment in the gold market has changed significantly as the price of this precious metal resists around $ 1,900 an ounce. In the middle of the week, gold attracted a lot of buying after the US Federal Reserve – Fed monetary policy meeting. The agency intends to maintain a loose monetary policy in the near future.
Although the gold market will struggle with low volume next week, RJO Futures luxury goods broker Daniel Pavilonis said the market has made significant technical progress.
Pavilonis believes that investors will turn to gold to hedge against rising inflation risks as increased economic stimulus and a weak dollar hit consumer prices in 2021. “I think we are seeing a period of time. New build-up and this will only start in 2021, “he said.
Richard Baker, editor of Eureka Miner, said he remains bullish on gold in the near term, even as investors believe that the approval of the Covid-19 vaccine will help economic growth. According to him, economic recovery still has a long way to go, even as people start to vaccinate.
“The weaker signals from the US manufacturing sector and the rising unemployment rate show that the road to economic recovery will be difficult in the coming months,” he said.
As the session closed on December 18, each ounce of spot gold fell nearly $ 5 to $ 1,881. However, overall, precious metal prices are up 2.2% this week. This is also the third week in a row that the price of gold has risen.
Your anh (according to Kitco)
