empty
 
 

Forex Analysis & Reviews: Gold: A strong start to December created bullish sentiment
time 05.12.2022 01:22 PM
time Relevance up to, 08.12.2022 11:42 AM

This image is no longer relevant

A strong start to December, with week-end prices topping $1,800 and approaching their highest level in more than three months, created significant bullishness in the market; however, the question remains whether there will be enough sentiment to take investors out of the game.

This image is no longer relevant

The latest weekly gold survey shows that Wall Street analysts and Main Street retail investors are very optimistic about gold this week.

Gold's rally began on Wednesday when Federal Reserve Chairman Jerome Powell said it might be wise for the US central bank to slow down its monetary policy tightening in December.

At the same time, analysts say rising recession fears are providing renewed momentum for gold as a safe haven.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said gold should remain optimistic even if rising interest rates continue to support the US dollar. According to him, investors are starting to realize that gold is still an important defensive asset.

Adam Button, head of currency strategy at Forexlive.com, said gold is benefiting from positive seasonal factors as demand picks up ahead of the holidays.

Last week, 18 Wall Street analysts took part in the gold survey. Among the participants, 12 people, or 67%, were bullish, and six analysts, or 33%, were bearish. There were no neutral votes in the survey.

In the Main Street online poll, 1,018 votes were cast. Of these, 715 respondents, or 70%, expected gold prices to rise this week. Another 188 voters, or 18%, said the price would go down, while 115 voters, or 11%, were neutral.

This image is no longer relevant

The optimistic forecast is due to the fact that gold prices rose by 2% at the end of the week. Even a stronger-than-expected November jobs report with strong wage growth was not enough to dampen gold's new momentum.

On Friday, the Bureau of Labor Statistics said 263,000 jobs were created in November; economists had expected 200,000 job gains. At the same time, wages increased by 5.1% YoY, well above expectations.

Darin Newsom, senior market analyst at Barchart, said the current week could be exciting for the precious metal as the current rally could be seen as a technical failure; however, he added that the momentum is clearly on the bullish side.

However, not all analysts are optimistic about gold, at least in the short term. Adrian Day, president of Adrian Day Asset Management, said that while bullish in the long term, he expects prices to fall this week.

Marc Chandler, managing director of Bannockburn Global Forex, said he is bearish on gold this week as markets are too optimistic about Powell's perceived dovish stance.

He added that the pay rise in the November jobs report shows that the Federal Reserve still has to deal with a growing inflation problem.

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

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

Collapsing house prices is about to become another problem for the Bank of England

Pound slumped due to the recent statements made by Bank of England representatives. Obviously, the latest interest rate hike was not enough, and the sharp reversal and soft tone

Jakub Novak 08:30 2023-02-07 UTC+2

GBP/USD. Overview for February 7, 2023

Without even an indication that a correction was about to start, the GBP/USD currency pair resumed its downward trend on Monday, which started after last week. As market participants might

Paolo Greco 06:02 2023-02-07 UTC+2

EUR/USD. Overview for February 7, 2023

As predicted yesterday, the EUR/USD currency pair continued to decline on Monday, albeit with less volatility. Given that neither the US nor the EU released any significant macroeconomic information

Paolo Greco 05:39 2023-02-07 UTC+2

Turkey halted oil exports after major earthquake

Oil rebounded from lows as flows to a key Turkish terminal were suspended and part of a major European field was shut down. The US crude oil benchmark known

Andrey Shevchenko 22:56 2023-02-06 UTC+2

What conclusions can we draw after three meetings?

As a result, meetings of the three central banks took place last week. As analysts and economists have been formulating theories regarding interest rates and the rhetoric of central bank

Chin Zhao 18:25 2023-02-06 UTC+2

AUD/USD: Australian dollar awaits RBA verdict

During Tuesday's Asian trading session, the Reserve Bank of Australia will summarize the results of its first meeting of the year. This is by no means a passing event, although

Irina Manzenko 17:38 2023-02-06 UTC+2
现在无法通话?
提出您的问题,用 在线帮助.