Kitco News' latest weekly gold survey shows that most experts expect gold to remain stable in the coming week. Out of 10 analysts participating in the survey, six predict that gold will trend sideways, while the remaining four expect it to rise in the coming week. No one predicts a decline in the price of the precious metal.
Colin Cieszynski, Head of Market Strategy at SIA Wealth Management, said: “I am neutral on gold in the coming week. After ten days of volatility, the market may stabilize.”
Similarly, Marc Chandler, Managing Director at Bannockburn Global Forex, also predicts that gold will trend sideways: “I think the market may have overestimated the likelihood of the Federal Reserve's 50-point cut.”
The highlight of the coming week will be the US CPI report. There is a possibility that CPI in the US will remain unchanged compared to the same period last year, meeting the low level of the Federal Reserve's interest rate cut in September (25 points). Investors should also note that the People's Bank of China has not purchased gold in the third month of July after 18 months of net purchases" - he said.
Adam Button, Director of Currency Strategy at Forexlive.com, Darin Newsom, Senior Market Analyst at Barchart.com, and Everett Millman, Senior Market Analyst at Gainesville Coins are among the experts who predict that gold will trend sideways.
“I do not expect any significant price increase. I think gold will continue to trend sideways with a slight bias towards higher trading. I do not expect to see anything until at least September” - Everett Millman said.
One thing that Millman believes may push gold to a new high before the deadline is the escalation in the Middle East.
Meanwhile, Adrian Day, Chairman of Adrian Day Asset Management, expects gold to rise higher: “Market expectations of the Federal Reserve's continuous interest rate cuts and gold prices are changing, but there is little doubt that there will be at least one interest rate cut in the near future. This will be a signal for investors to pay more attention to gold, especially when the US economy shows signs of recession.”
Similarly, James Stanley, Senior Market Strategist at Forex.com, also believes that gold will rise in the coming week.
Sean Lusk, Co-Director of Risk Management at Walsh Trading, notes that the gold market is changing very quickly, making it difficult for investors to predict the direction.
Lusk said he expects the precious metal to remain strong. "Although there is no other significant price increase in the near future, I believe that gold will rise higher by the end of the year. The next target for gold will be the area from 2,580 USD to 2,585 USD/ounce, which is 25% higher than last year."
Kitco's Senior Analyst, Jim Wyckoff, believes that the fundamental technical forces support a rise in gold prices in the coming week.
