Strong bullish sentiment in gold points to higher prices after critical breakout rally. The sentiment in the gold price market has risen significantly as the precious metal sees its best weekly gains in six months. Details Cryptocoin. com
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Gold prices move
This week, gold prices broke the current downtrend. Inflation fears reignited after the U.S. Consumer Price Index rose 6.2% year-on-year, its highest in more than 30 years. Precious metals also rose to a five-month high. “Many investors were expecting this,” said Philip Streible, chief market strategist at Blue Line Futures. “Gold did exactly what it was supposed to do, which is to protect investors from rising inflation.” December gold prices are the latest, about 2% weekly. It traded at $1,865.80, up 7 percent.
This week, 18 Wall Street analysts took part in Kitco News’ gold survey. Among respondents, 15 analysts, or 83%, expected gold prices to rise next week. At the same time, two analysts, or 11%, were bearish against gold in the short term, and one analyst, or 6%, remained neutral on prices. Meanwhile, a total of 1,018 votes were cast in online Main Street polls. Of these, 722, or 71%, expect gold to rise next week. Other 165, or 16%, voters said lower, while 131 voters, or 13%, remained neutral. Sentiment among retail investors is at its highest since early May. It’s not just that inflation continues to rise, it’s the reason why gold has regained interest. Some analysts said the growing fear of the Fed losing control will also continue to support prices.
Fed losing control?
Adrian Day said, “The genie of inflation is out of the bottle and won’t be back for a while. “The move could be dramatic as general investors turn to gold for a small allowance.” Colin Cieszynski, chief market strategist at SIA Wealth Management, said he expects gold prices to continue to rise as the break above $1,835 is a significant move. He added that a rally in silver and platinum should solidify the new uptrend of gold. “The expectation of inflation growth that fueled this week’s precious metals rally could continue into next week as Canada and the UK report inflation figures,” the analyst said.
kitco Jim Wyckoff, senior technical analyst at com.com, said he is also optimistic about gold. He said in a research note that gold is in a five-week uptrend. The next resistance target is $1,900 per ounce. Forexlive. com chief currency strategist Adam Button said he expects gold prices to rise as sentiment in the futures market rises after the breakout. Analyst: “The sentiment is still as bad as I’ve seen, but that’s the best starting point. Positive price action can quickly turn bears into bulls,” he said.
However, not all analysts are optimistic about gold in the near term. Ole Hansen said investors could see prices pull back to $1,830 an ounce before making another big move at $1,900. Marc Chandler, managing director of Bannockburn Global Forex, said that gold has performed impressively. However, he wasn’t convinced the precious metal could withstand headwinds from rising bond yields and a stronger US dollar. Analyst: “A stronger dollar and higher yields are the traditional scourge of gold bulls. The US economy is accelerating in the third quarter after a soft 2% annual pace. So next week’s retail sales and industrial production data should be solid. “I predict a price between $ 1815 – $ 1825 in the test,” he said.