Gold price next week receives positive forecast from experts

Marc Chandler, CEO of Bannockburn Global Forex, said that gold has held resistance above $2,600 an ounce: “Tensions in the Middle East are supporting gold prices but higher interest rates and a strong US dollar could put pressure on the precious metal.”

Darin Newsom, senior market analyst at Barchart.com; James Stanley, senior market strategist at Forex.com; Mark Leibovit, publisher of VR Metals/Resource Letter; and Daniel Pavilonis, senior commodities broker at RJO Futures, are among those who are bullish on gold next week.

James Stanley said: "Over the past few weeks, bulls have had every reason to take profits after the strengthening US dollar and more recently strong US NFP and CPI reports. However, that has only produced a slight pullback. I know that bulls are not done yet, they are testing resistance for a new rally."

“It looks like gold is still trying to track the price up to $3,000 an ounce. If we look at the events that are happening, we can see geopolitical tensions escalating,” said Daniel Pavilonis.

Also we have elections coming up. There is a lot of uncertainty with the US election. Then there is de-dollarization, a lot of countries joining BRICS. I think this is a perfect scenario for gold."

Pavilonis said that aside from all the geopolitical dynamics, price pressures are not yet fully under control.

“We still have inflation data coming out. The Fed has to cut rates because although inflation, prices, consumer spending are still strong, there are some weaknesses in the market that they have to cut rates. For example, the housing market is almost dead, which could cause another domino effect of slowing construction spending, job losses... potentially pushing us into a recession.”

“I don’t see any reason for gold to go lower,” he added. “My prediction for gold is that we’re going to see another week of gains. How much higher can gold go, that’s the question.”

Meanwhile, Kitco senior analyst Jim Wyckoff said gold prices will continue to move higher next week: "Technical factors remain bullish and geopolitical tensions remain high."

“I am neutral on gold next week,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. “After a big rally, gold has settled into a $2,600-$2,700/oz trading range. With no central bank meetings and no currency volatility data, next week looks to be a quiet one for gold.”

Adam Button, head of currency strategy at Forexlive.com, agrees, but says gold has shown impressive resilience as it bounces back from the strength of the US dollar and rising Treasury yields.

“There’s no good news for gold this week, as far as I can see. Most of the news is positive for the dollar and bonds, but gold is holding steady,” Button said. Despite the higher-than-expected US CPI, he doesn’t think there are too many people betting on a real recovery in inflation.

“I see CPI as bad news for gold because the dollar is strong. Equities are at all-time highs and that’s definitely a competitive factor. I’m very focused on China’s stimulus,” he said.

Button noted that China's central bank also stopped buying gold months ago and they will likely keep doing so for longer than many people expect."

Michael Moor, founder of Moor Analytics, said the technical picture is currently mixed going forward.