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FX.co ★ Where will gold go this week?

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Forex Analysis:::2021-06-14T09:20:24

Where will gold go this week?

Where will gold go this week?

Gold prices could go anywhere this week, with analysts hoping to buy back the decline. According to the latest Weekly Gold Survey, the market is in consolidation once again, and Wall Street analysts do not see a clear direction in the near term. And while noting that gold is receiving solid fundamental support as inflationary pressures continue to rise, they added that the technical outlook for the precious metal looks bearish since prices have failed to hold above $ 1,900 an ounce.

Nevertheless, the sentiment of Wall Street analysts sharply changed last week, and retail investors remain optimistic about gold.

Main Street's online polls received 1,056 votes – 695 respondents, or 66% expected gold prices to rise this week, while another 181 respondents or 17% answered the opposite. In turn, 180 voters, or 17%, were neutral in their answers.

Where will gold go this week?

Looking ahead, Western analysts said that it is difficult to actually short gold, when inflation rose by 5% per year last month, which was the largest increase since August 2008. The rising inflation, combined with lower interest rates, means that real yields have fallen further into the negative zone.

Many analysts say that while gold prices are consolidating, the trend and momentum remain bullish as prices hold above $ 1,855 an ounce.

Ole Hansen, Head of Commodity Strategies at Saxo Bank, said that he is set to lower gold's price in terms of technical analysis. He added that the market is losing momentum and needs to find a new catalyst for the upward trend.

"In my opinion, the Fed is wrong, but the gold market has shown that inflation does not have a serious impact on the economy, I see only short-term reasons for the fall in gold, but there are no global fundamental reasons for this." He replied.

In addition, President of Darin Newsom Analysis Darin Newsom said he is bearish on gold for the near future and added their assumption of a deeper correction to buy gold.

"We are aiming for initial support at $ 1871.80. I think we are going to overcome it, and the next target will be $ 1827. This is where buyers will resume their positions. I don't see a global sale, but it would be an attractive place to shop," He said.

Phillip Streible, Blue Line Futures' Chief Market Strategist, is also looking ahead to lower gold prices. However, he believes that the fall is not so exciting to consider the gold market bearish. Thus, he would like to see prices at the level of 1850, in order to enter the market for the next purchases.

Lastly, Marc Chandler, Managing Director of Bannockburn Global Forex, said he was still bearish on gold, as the price level of $ 1,900 proved to be serious resistance. He also mentioned that the yield on Treasury bonds will show growth during the Fed's next meeting.

Where will gold go this week?

Analyst InstaForex
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