Colin Cieszynski - chief strategist at SIA Wealth Management - predicted: "This week I am optimistic about gold. Disappointing US jobs figures this week have increased the pressure on the Federal Reserve (FED) to cut interest rates at the upcoming meeting, possibly by 50 basis points. This has begun to reduce Treasury yields and the US dollar, opening up opportunities for gold to continue to rise.
Darin Newsom - senior market analyst at Barchart.com, commented: "Gold prices will increase. It would be unrealistic to think differently, because market factors are constantly setting new records.
James Stanley, senior market strategist at Forex.com, said. Gold prices will increase. There is no reason to doubt the trend at the moment. I have been optimistic for the past few years, and I still maintain the same view even though gold just hit a new peak last week.
With the upcoming FOMC, I expect the market to see a strong easing move from the Fed that could continue to push gold prices up and I expect the correction to be shallow if there are no major fluctuations, Stanley added.
sameer Samana - Head of Global Stock and Real Assets at Wells Fargo Investment Institute - said that gold and silver will still outperform the stock market in the context of low interest rates.
"The interesting thing is that the current environment is good for most risky assets. Rarely does the Fed consider cutting interest rates when inflation is still much higher than the 2% target - at 3% and creating a bottom - but they still consider cutting, he said.
He added: It is clear that the focus has shifted from inflation to the labor market. That means high-quality risk assets have more opportunities to increase in price.
Samana believes the reason for gold is structural: If the Fed starts cutting interest rates and focusing on the labor market when inflation is at 3%, it is basically abandoning bond investors. Bonds will be under pressure and no longer be a good risk hedge. At that time, investors have to find another place, and gold is the easiest choice.
He also emphasized the trend of diversifying away from the USD from central banks. If countries prioritize their economies before fiscal discipline, the consequence will be rising inflation.
Alex Kuptsikevich, senior analyst at FxPro, also predicted that gold prices will continue to increase this week. Global bond sell-offs have boosted demand for safe-haven assets, taking gold to record levels, he said. Governments of countries have borrowed heavily during the period of super low interest rates, but interest rates have skyrocketed in the period of 2022-2024. As a result, the US has to pay interest costs four times higher than before the global financial crisis, even higher than defense spending.
Buy for the precious metal is supported by ETF investors and the intention to buy more central bank reserve gold after a stagnation period in the second quarter, he added.
SPDR Gold share has reached its highest reserve level since August 2022. Expectations of a Fed rate cut create a wind for gold, with Morgan Stanley predicting that interest rates will fall to 2.75-3% in 2026.
Eugenia Mykuliak - founder and CEO of B2PRIME Group - said that the weak USD, expectations of the FED cutting interest rates and doubts about the Fed's independence have put gold at record levels.
The central bank also plays a big role. Countries such as China, Turkey, and India continue to accumulate reserves, while ETFs still have a steady capital flow. This creates strong demand, not just short-term speculation, she said.
On the investment side, she said the safety of traditional hiding places is being questioned: US Treasury bonds and the US dollar contain more risks than before, so gold becomes an alternative choice. Technical momentum also supports this trend, and I expect prices to head towards the 3,600-3,800 USD/ounce range, with 4,000 USD/ounce being the actual peak.
Meanwhile, Rich Checkan - Chairman and COO of Asset Strategies International - said that gold prices in the short term decreased but not much: "I expect a slight correction due to profit-taking and cautious sentiment before the FOMC interest rate decision on January 17".
Michael Brown - senior strategist at Pepperstone predicted less optimism about short-term gold prices. He noted that gold has risen too quickly in a short period of time and there is an existential risk of correction, but stressed that declines should be viewed as a buying opportunity.
