Marc Chandler, managing director at Bannockburn Global Forex, said the bullish trend in gold prices continues: “Gold's rise is supported by lower US interest rates and a weaker USD. Last week, gold prices soared to nearly 2,425 USD after a weak CPI index and speculation that the US Federal Reserve (FED) could cut interest rates more than twice this year (with about a 40% chance of cutting interest rates). third time)".
Sharing the same opinion, James Stanley - senior market strategist at Forex.com - also said that gold prices will increase this week.
Sean Lusk - co-head of commercial hedging at Walsh Trading - said he is analyzing US economic data this week to determine the direction for gold.
Meanwhile, Alex Kuptsikevich - senior market analyst at FxPro - noted that the rise in gold prices above $2,400/ounce bodes well for gold prices and he sees bright potential in the precious metal.
“Gold prices are approaching the top of the range of the past three months, which could be the end of the consolidation after recovering from the lows. Gold prices have been shrouded in uncertainty in recent months due to mixed inflation numbers. And now, we are recording the FED's willingness to loosen monetary policy.
From a technical analysis point of view, the potential price increase target of gold in case of breaking the resistance level is 2,850 USD/ounce" - he said.
Kitco senior analyst - Mr. Jim Wyckoff - said that the dovish tilt from the FED is continuing to support the technical picture of gold prices.
In a note shared with Kitco News, analysts at CPM Group said they continue to view gold as an asset worth buying in the near term.
“Gold prices are trying to hold high, supported by rising concerns and uncertainties about the political situation around the world. As the US election approaches, support for gold prices increases.
CPM said that if the gold price can keep above 2,400 USD/ounce, it can create a basis for gold to set a new record by the end of this year.
On the contrary, Darin Newsom - senior market analyst at Barchart.com - said that gold price will decrease this week.
Newsom said that, technically, August gold futures could be shifting to a short-term downtrend on the weekly chart after reaching a range of $2,411.10 to $2,440.10 an ounce during the week. This".
Adam Button - director of currency strategy at Forexlive.com, commented that the two days of testimony by FED Chairman - Mr. Jerome Powell are very important. However he expected gold prices to fall due to news from China this week.
"China said it did not buy for the second month in a row. Many people expected China to only stop buying for one month, but it seems they stopped buying for two months."
With China's central bank playing a key role in influencing gold prices over the past few years, Button was surprised to see such a "shallow and short" decline in the precious metal.
Explaining gold price movements in recent sessions, this expert said that the precious metal's price increased due to the FED's ability to loosen monetary policy: "We are getting closer to the FED's interest rate cut. US Treasury bond yields fall, the USD weakens and gold increases is understandable."
13 Wall Street analysts participated in Kitco News' gold survey. With one exception, all experts say gold will move higher.
12 experts predict gold prices will increase further this week. Only one analyst predicts prices will fall. No one sees gold trending sideways this week.
Meanwhile, 178 votes were cast in Kitco's online poll. Main Street investors maintained their optimistic stance from last week.
119 retail traders predict gold prices will rise this week. Another 32 predict the precious metal will trade lower. Meanwhile, 27 respondents predicted that the price would trade sideways this week.
