Gold price developments last week
After two weeks of declines following the impact of billionaire Donald Trump's victory in the US presidential election, gold prices have recovered strongly this week, recording an increase of up to 150 USD/ounce.
Gold opened the week at $2,563 an ounce. It jumped $10 in the first hour of trading. It then continued to rise, reaching $2,594 an ounce. Throughout the session, gold repeatedly tested the $2,600 resistance level, breaking above it on Monday morning.
Since then, gold prices have continued to rise steadily, with resistance levels being broken one after another. Gold surpassed $2,625 an ounce early Tuesday morning and peaked at $2,641.42 that evening.
After a brief correction, gold prices quickly recovered and continued their upward trend in the following days. On Wednesday, prices surpassed $2,645 and hit a weekly high of $2,690 on Thursday evening, before breaking the important resistance level of $2,700 on Friday morning.
Optimism prevails
According to the weekly Kitco News survey, market experts have shifted from bearish to strongly bullish. Of the 18 analysts who participated, 89% expect gold prices to rise next week. Similarly, in the online survey, 66% of retail investors also said that gold prices will continue to rise.
Rich Checkan, President of Asset Strategies International, said: "The trend is rising again thanks to escalating tensions between Russia and Ukraine along with bargain hunting after the decline."
Meanwhile, Darin Newsom, senior analyst at Barchart.com, warned of a possible correction but still affirmed that gold prices will maintain their upward momentum at least until the end of 2024.
Marc Chandler, CEO of Bannockburn Global Forex, predicts gold prices could hit $3,000 next year, emphasizing the importance of geopolitics in driving gold prices.
“The market action this week has been very positive, with the strongest weekly gain of the year,” he said.
Outlook for next week
With the trading week short due to the Thanksgiving holiday in the US, analysts expect trading volumes to pick up sharply at the start of the week.
"We could see some heavy volume on Monday, Tuesday and Wednesday before the market slows down for the holidays," said Kevin Grady, president of Phoenix Futures and Options.
Analysts at CPM Group expect gold prices to hit $2,730 an ounce in the next two weeks, buoyed by geopolitical and economic events. However, they also warn of potential profit-taking as December approaches.
Gold prices are receiving strong support from both geopolitical factors and market sentiment. If it holds above the $2,700 mark, the precious metal has the potential to continue rising to higher levels in the near future.
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