Adrian Day - Chairman of Adrian Day Asset Management is one of the experts who predicts positively about gold prices next week: "Currently, the gold price increase seems unstoppable, although there will be times of pause or retreat."
Agreeing, Colin Cieszynski - Chief Market Strategist at SIA Wealth Management - said he remains bullish on gold next week: "After hitting a new record high, technically it looks like a new rally may have begun."
“I would remain bullish,” said James Stanley, senior market strategist at Forex.com. “I have no reason to think the momentum in gold will change so I would maintain a bullish stance next week on gold.”
On the other hand, Mark Leibovit, publisher of VR Metals/Resource Letter, and StoneX Bullion market analyst Fawad Razaqzada expect gold prices to fall next week. However, Fawad Razaqzada remains optimistic about gold prices in the long term.
“Technically, gold remains in a strong uptrend. However, be wary of profit-taking and short-term reversal signals as indicators are pointing to overbought conditions,” said Fawad Razaqzada.
Gold has convinced the last skeptics this week, said Alex Kuptsikevich, senior market analyst at FxPro. The expert said the drop in US government bond yields increased interest in gold.
Notably, analysts at CPM Group recommend that investors "stay on the sidelines" in the near term.
“The Fed has cut by 50 basis points. They have lowered their average forecast for future interest rates, as well as their expectations for future economic growth and inflation. They have also raised their unemployment forecast. All of these things together suggest that the Fed is concerned about future economic growth, but with a 50 basis point cut and a lower forecast for interest rates, the Fed is trying to show the market that they are ready to act aggressively if necessary.”
Marc Chandler, CEO of Bannockburn Global Forex, sees the precious metal trending sideways next week. “Gold hit our $2,600/oz target mid-week after the Fed cut interest rates by 50 basis points. It has since retreated.
This expert believes that next week, gold prices will be quieter, possibly due to some investors taking profits when this precious metal is anchored at a record high.
After weeks of predicting rising gold prices, this week Kitco senior analyst Jim Wyckoff said gold prices will be "unstable and sideways".
Economic data affects gold prices next week
While there isn't as much economic data as last week, next week's economic calendar still has a slew of important data releases, including S&P Flash PMI on Monday, US consumer confidence on Tuesday, US new home sales on Wednesday and US durable goods report on Thursday, Q3 GDP and weekly jobless claims and US pending home sales.
The main event next week that could have a big impact on gold prices is the release of the US core personal consumption expenditure (PCE) index for August, the Fed’s preferred inflation gauge, due Friday morning.
