The weekly gold survey of an international financial information platform shows that experts and traders all have a positive outlook for gold prices this week.
James Stanley - senior market strategist at Forex.com predicted: "In. I have maintained an optimistic view for a long time and have not seen a reason to change. For spot gold, the $3,435/ounce mark stands out because it has been tested three times in May, June and July, but each time after the adjustment level is smaller, I think buyers will still be proactive and can create a breakthrough".
Stanley added: The larger rate is $3,500 an ounce, which was tested in April. I hope the next try will take place after a steady uptrend instead of a quick breakthrough, because if the increase is too fast, the buyers will easily stagnate."
Michael Moor founder of Moor Analytics analyzed that technical milestones showed many bullish signals that were confirmed at different time frames.
Ole Hansen - Head of Commodity Strategy at Saxo Bank commented that the real signal of a breakthrough for gold will come from the spot market and that has not happened yet. December gold futures the most traded on COMEX, set a new overnight record of $3,534 an ounce, with a gap from the London spot price widening to more than $100 from about $40 last week. This further strengthens the London spot price (XAUUSD) as the most reliable indicator of the real value of gold today".
Hansen warned: "Don't look at technical disruption signals in the futures market, as prices are currently being strongly regulated by EFP fluctuations (transactions for exchanging futures for physical gold). What matters is how spot prices are trending, and gold has been stuck in the range since April, needing to surpass $3,450/ounce to change."
Sean Lusk, co-head of commercial risk prevention at Walsh Trading, said the story of gold tax is just fuel for the rally, while expectations of a September rate cut have been reflected in the price. I think most of it has been priced. We have just set a new record".
There is too much uncertainty, that is the reason why prices set a new peak at night when trading volume is very low. I think there are enough factors to push prices in both directions. We are at a new level now, the question is what the next level of expansion will be," said Sean Lusk.
According to him, if prices fall below $3,400/ounce, the market could fall to around $3,280/ounce; on the contrary, the 40% expansion target will be $3,690 - $3,697/ounce. Lusk also said that higher inflation will not disappoint expectations of a September rate cut, even the cut could reach 50 basis points.
Marc Chandler - CEO of Bannockburn Global Forex - predicted that gold could correct after testing the 3,410 USD/ounce mark before the weekend. Property and USD may increase ahead of the US CPI report on Tuesday, with both the general and core indices expected to increase for the third consecutive month. In addition, it is likely that the White House will clarify the tax rates.
Chandler believes that $3,355 an ounce could be a less risky entry. He also found that the US Treasury Department is getting closer to re-evaluating gold reserves at market prices like many European countries.
Adrian Day Chairman of Adrian Day Asset Management said he is more interested in next weeks consumer data rather than inflation, and does not expect the CPI or PPI to increase sharply. He predicted that consumer sentiment and retail sales may remain weak, even if not as good as the recent jobs report. He believes the market has fully reflected the September interest rate cut, and gold will continue to fluctuate within the current range, with the possibility of a slight decrease after the increase in the past two weeks.
Eugenia Mykuliak - founder and CEO of B2PRIME Group believes that gold tax is just the latest factor supporting gold prices towards autumn.
Tax creates uncertainty and motivates investors to seek shelter like gold. Rising US inflation, slower job growth and increased risk of recession also supported gold. The market is currently viewing the possibility of the US Federal Reserve (FED) cutting interest rates in September, which often reduces the cost of holding non-interest-bearing assets such as gold" - Eugenia Mykuliak said.
Unex change - Rich Checkan President and COO of Asset Strategies International commented. I think it will take some time for Swiss tax news to penetrate the system. This week, let's wait and see how it goes... or another turning point from US President Donald Trump."
