Gold price receives positive forecast
Adrian Day - Chairman of Adrian Day Asset Management - commented: "Gold prices will increase. It seems that the correction I predicted is over. Gold's resilience to any decline since the election is really impressive. The reasons why people are buying gold are still intact and we expect a new rally to hit an all-time high very soon."
Rich Checkan - Chairman and COO of Asset Strategies International also shared the same view: "Conserns about the stock market and inflation are enough to keep gold prices up".
Darin Newsom, senior market analyst at Barchart.com, admitted that he was wrong in predicting a decline in gold prices last week: "Long-term investors in the market are not interested in technical or fundamental analysis; they are just looking for a safe haven market amid geopolitical chaos and increased volatility from the US government and its allies."
influenced by the FED's policies and economic factors
Colin Cieszynski - market strategist at SIA Wealth Management, maintains a neutral view in the short term. He said gold is in a consolidation phase and is awaiting further moves from the economy and politics.
"We may be looking at the movements of the money and interest rates. How will tariffs affect the USD? We have seen a strong increase in the Euro this week, and this has appeared unexpectedly around Germany, so there are many factors affecting it" - this expert commented.
Cieszynski especially emphasized the upcoming meeting of the US Federal Reserve (FED), saying that it will be a decisive moment for gold prices: "It is not necessarily, 'The Fed will cut interest rates without,' but the FED will announce its forecasts. We will have reports on inflation, retail revenue and other information to have a clearer view of the direction of the economy."
Marc Chandler - CEO of Bannockburn Global Forex - commented that the gold trading model shows that the uptrend continues. He also noted that China and US inflation data will have an important impact next week. "This model shows an upward trend, and gold is likely to retest the record high set on February 24, above $2,956/ounce, possibly next week."
Meanwhile, Adam Button, head of currency strategy at Forexlive.com, is neutral in the short term but still optimistic about gold's long-term outlook.
He said that political factors are having a stronger impact on the Fed's policy: "Current market discussions mainly revolve around politics, Mr. Donald Trump and tax cuts. I think this topic has not been analyzed enough, especially its potential difficulties".
Button said that instability from the Trump administration is supporting gold prices more than any other factor from the Fed. "I affirm that without hesitation. I believe that 95% of gold's increase comes from politics and Mr. Donald Trump, while the Fed only contributes about 5%."
Potential gold price to reach 3,000 USD/ounce
Factors such as the Fed's policy, the political situation in the US and global economic instability are all creating momentum for gold. Many experts believe that gold could soon reach $3,000/ounce if the current trend continues, and there is even a higher chance if uncertainty increases.
Alex Kuptsikevich, senior market analyst at FxPro, believes gold could soon surpass $2,950 and reach $3,180 if the current trend continues.
"Caution in the US stock market is putting pressure on the selling side, while the weakening of the USD adds momentum to the buying side."
Michael Moor - founder of Moor Analytics, also remains optimistic: "Sportful trading below $2,919.9 will warn of downward pressure, but over a longer period of time, gold is still in an uptrend since November 2015 and may be in the final stage of this cycle".
Investors are currently closely monitoring the Fed's decisions and new developments in the global financial market to seek opportunities in the gold market. In that context, gold continues to affirm its position as a leading safe haven asset for investors.
