empty
 
 

Forex Analysis & Reviews: Gold keeps afloat
time 28.11.2022 01:51 PM
time Relevance up to, 01.12.2022 11:36 AM

With the Federal Reserve hoping to slow the pace of rate hikes next month and into 2023, retail investors have become increasingly interested in gold.

However, Wall Street analysts are not convinced that gold is ready for a breakout, and many expect prices to trade in a sideways range in the near term.

According to RJO Futures senior market strategist Bob Haberkorn, despite growing interest in gold, prices will stagnate near current levels as a new catalyst is needed to push the price above $1,800 an ounce.

"Everyone is focused on the Fed and how high interest rates are going," he said. "I think gold will remain fairly sideways until that Fed decision. I think gold will be a boring market until then."

Last week, 16 Wall Street analysts took part in the gold survey. Among the participants, seven analysts, or 44%, were neutral about gold. At the same time, six analysts, or 38%, are bullish for the current week, and three analysts, or 19%, are bearish on prices.

Meanwhile, 1,054 votes were cast in the Main Street online poll. Of these, 667 respondents, or 63%, expected gold prices to rise this week. Another 253 voters, or 24%, said the price would go down, while 134 voters, or 13%, were neutral in the near term.

This image is no longer relevant

Not only are retail investors extremely bullish on gold, but last week's survey participation jumped to its highest level since the end of September.

Along with the Federal Reserve's monetary policy, some analysts have said they are currently biding their time to see how US dollar flows affect gold prices. Economists noted that the US dollar index is trading at a critical turning point near 106 points, and further weakness will be positive for gold.

This image is no longer relevant

"Gold appears to have turned a corner with U.S. treasury yields and the U.S. dollar backing off, enabling its role as a store of value in turbulent times to come back to the forefront," said Colin Cieszynski, chief market strategist at SIA Wealth Management. He remains bullish on gold as he expects the US dollar to peak.

However, other analysts are not convinced that the US dollar is heading down, especially since expectations that the Federal Reserve will raise interest rates above 5% early next year remain firm.

"I am looking for higher rates and a stronger dollar to allow gold in the cash market to test $1,720–$1,730," said Marc Chandler, managing director of Bannockburn Global Forex.

This image is no longer relevant

Adrian Day, president of Adrian Day Asset Management, said some consolidation in gold would be healthy after the precious metal's solid gains since the start of the month.

"Gold needs to rest," he said. "Absent a new development, gold will likely be relatively unchanged next week. As we get closer to the next Federal Reserve and European Central Bank meetings in mid-December, the market will be looking for signs of a slowdown or even pause in tightening and that will boost gold again."

Irina Yanina,
Analytical expert of InstaForex
© 2007-2023
EURUSD
Euro vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex分析评论将让您充分了解市场趋势! 作为InstaForex的客户,您将获得大量的免费服务以实现有效的交易。

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In February we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

EUR/USD. What did Powell say?

The head of the Fed reacted rather calmly to January's Nonfarm payrolls, but also made it clear that the U.S. central bank is not going to curtail its hawkish strategy

Irina Manzenko 04:52 2023-02-08 UTC+2

Commerzbank analysts and ECB officials do not expect a strong fall in the euro.

It's time to discuss the likelihood of a decrease now that the EUR/USD and GBP/USD pairs have been declining since last week. I'll make an effort to comprehend the issue

Chin Zhao 16:41 2023-02-07 UTC+2

Will EURUSD upward trend break?

Ignorance is not an excuse. No one—neither the Fed nor the financial markets—knows exactly with what time lag the tightening of monetary policy affects the economy. A miscalculation will

Marek Petkovich 15:23 2023-02-07 UTC+2

AUD/USD. The Reserve Bank of Australia increased the interest rate by 25 points

The Reserve Bank of Australia increased the interest rate by 25 basis points, or to 3.35%, as a result of the meeting's outcomes. This choice was anticipated, especially in light

Irina Manzenko 14:42 2023-02-07 UTC+2

EUR/USD: brief summary and near-term outlook

The dollar index (DXY) is retreating from the 4-week highs reached yesterday and at the beginning of today's European trading session, near the 103.67 mark: as of writing, DXY futures

Jurij Tolin 13:53 2023-02-07 UTC+2

Strong jobs report may spur Fed to raise interest rates even higher

Market participants are waiting for another speech by Fed Chair Jerome Powell, especially his comments on the recent labor market report. Federal Reserve Bank of Atlanta President Raphael Bostic said

Jakub Novak 12:34 2023-02-07 UTC+2

Markets will be feverish in the week ahead of US inflation data

Global markets continue to move down, reflecting the growing concern that the Fed will lose its optimism on the easing of inflation due to the strong labor market data. However

Pati Gani 12:07 2023-02-07 UTC+2

Japanese government stops yen from falling

Data shows that Japan intervened three times in the forex market last year to counter the historic plunge of yen. £5.6 trillion and £729.6 billion were spent on October

Irina Yanina 10:57 2023-02-07 UTC+2

Saudi Aramco raises oil prices after the earthquake in Turkey

WTI climbed above $75 a barrel after Saudi Aramco raised the price of its deliveries to Asia amid growing optimism about a sustained recovery in demand in China. Equity markets

Andrey Shevchenko 10:38 2023-02-07 UTC+2

Oil maintains bullish outlook

When everyone is selling, there is a great opportunity to buy. The strong U.S. employment statistics for January and the related strengthening of the U.S. dollar were good news

Marek Petkovich 09:44 2023-02-07 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.