Golden days of Gold will be over?

Golden days of Gold will be over?

gold news

According to the Kitco News website, it seems that optimism to the bull trend of gold is increasing, especially because the price of gold has surpassed the $1800 before the Christmas holidays. However, professionals in the market recommend traders be careful about trading gold during the next week.

Most analysts believe that gold is entering a seasonal period, and the demand level for it will go higher. However, they believe that there will be extreme volatility in the gold market during the next week because the number of trades will drop significantly. The low volume of trades and the holidays also affected the weekly analyses of the Kitco website, and fewer people participated in the surveys. This week 16 professionals from Wallstreet participated in the weekly analyses. About 70% of them predicted that the trend of gold would be bullish during the next week. At the same time, 15% of them predicted a bearish trend, and also the last 15% predicted that the gold trend would be neutral. In addition, 638 investors participated in this online survey. 54% of them predicted a bullish trend, 21% predicted a bearish trend, and 25% believed the market would be neutral.

As we see an increase of optimism about the gold price, the XAU/USD managed to stay above $1800 during the last week. Some analysts believe that the trend will be bullish in the midterm because the physical demand for gold is high during December and the first months of the new year. In addition to seasonal factors, analysts believe that the chance of increasing gold price is high based on technical factors. The price is steady above the $1800 level, and breaking above the $1815 and $1835 will confirm the continuation of the bullish price.

analysts views

Philip Streible, the senior market strategist in Blue Line Futures, stated that people could buy gold before Christmas and sell them after January 11th and make a good profit nine times in the past ten years. Usually, at the beginning of each year, investors are doubtful about the markets; that is why they try to cover the risks by buying gold.

David Madden, the market analyst in Equiti Capital, also expressed that although the global gold price is rising, it can’t resume this trend more than this till the US dollar is in a good situation. The US dollar index has not surpassed its highest level in 2021 in November, but it’s still experiencing a bullish trend and pushing more pressure on the gold price. He believes selling the US dollar is a mistake as the federal reserve is determined to increase interest rates three times in 2022.

Christopher Vecchio, another senior market strategist who works in DailyFX, believes that the gold trend is neutral in the midterm, and he is not so optimistic about the gold price. He also stated that due to federal reserve policies in the new year, he doesn’t expect the bullish trend of gold to continue.

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