While there is strong positive sentiment in the market, the question remains whether gold has enough momentum to push back above $ 2,000 an ounce in the near term.
“We see near-term upside potential in a broader downtrend,” said Darin Newsom, president of Darin Newsom Analysis. “We have yet to see if this momentum lasts. ”
This week, 17 analysts participated in the survey. A total of 13 voters, or 76%, called for a rise in gold prices; an analyst, 6%, called for lower prices next week; and three analysts, or 18%, said they saw prices move sideways.
While sentiment among retail voters remains bullish, interest in the precious metal as prices continue to consolidate has declined significantly.
Participation in Kitco News’ weekly online polls has fallen to its lowest level since late June. A total of 1,164 votes were cast last week. Of those, 628 voters, or 54%, said they were bullish on gold next week. Another 309, or 27%, said they were bearish, while 227 voters, or 20%, were neutral.
The renewed momentum in the gold market on Friday helps the precious metal to close the week with a gain of 1%; December gold futures traded last at $ 1,928.80 an ounce.
While analysts believe it is possible for gold to rise in the near term, they are not convinced prices will exceed $ 2,000 anytime soon.
“I expect gold prices to rise next week, but this is really just a rise in its wider trading range,” said Colin Cieszynski, chief strategist of the market at SIA Wealth Management.
Cieszynski added that gold needs more stimulus spending to reach new all-time highs.
“It looks like central banks aren’t ready to inject more stimulus into the markets and I don’t think the government will do anything until the election,” he said. “The election is so close and so close that each side wants to give the other a perceived victory on the stimulus. ”
However, other analysts predict that this could be just the start of the new gold race.
Adrian Day, chairman and CEO of Adrian Day Asset Management, said the two-step forward and backward price action of gold may start to attract investors to the market.
“The fundamentals remain extremely positive, so I suspect that as those on the sidelines realize that gold is not falling significantly from here, there will, at some point, be another rush for the metal,” did he declare.
Richard Baker, editor of the Eureka Miner report, said he sees the price of gold slightly higher next week, but also warned that volatility will remain high.
“Gold will undoubtedly experience volatility as the relaunch of Congress hopes to struggle to strike a balance with the realities of the domestic coronavirus and the presidential elections,” he said.
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