[ad_1]
Experts predict that the price of gold this week may fall further and fall to $ 1,600 if it breaks the $ 1,760 – $ 1,780 support threshold.
According to the survey Kitco, many Wall Street analysts lean towards the scenario that gold will continue to decline this week. Specifically, 8 of 15 Wall Street analysts surveyed said gold will continue to decline, 6 predicted the price will rise, and only 1 said the price would go sideways.
The survey of 1,270 individual investors also showed that 48% were bullish on the price of gold, 33% expected the price to drop, and 21% said the price would go sideways.
For many analysts, the biggest hurdle precious metals face is the positive news about the Covid-19 vaccine. The confidence of the vaccine that caused the global economy to recover faster than expected caused the precious metal to fall below the $ 1,800 support level and hit a 5-month low.
Along with investor optimism, some experts assess that seasonal factors also contribute to the decline in gold prices. Since the past, the gold market is usually quite gloomy in the last month of the year and the buying momentum will resume from January.
Positive vaccine news sent gold plummeting despite a weaker dollar, said Tai Wong, head of metal derivatives trading at BMO Capital Markets. Precious metal prices are below the 200-day moving average, which could trigger a sell-off.
Market strategist Quek Ser Leang of United Overseas Bank said gold has entered the next tightening phase of the tightening phase. If gold breaks out of the $ 1,760 – $ 1,780 support zone, gold will continue to weaken to the $ 1,600 threshold.
By contrast, Ole Hansen, Saxo Bank’s head of commodity strategy, said he remains bullish on gold in the short term. There is no reason for gold to be sold because two strong supporters of the precious metal remain unchanged: the weak US dollar and falling bond yields.
Quynh Trang (According to Kitco, Bloomberg)
