The gold market is beginning to acquire some bullish dynamics after a long quiet summer. According to the latest weekly review of gold prices, the opinions of Wall Street and Main Street analysts coincided.
In their opinion, gold can start a new growth with a possible target of $ 1,900. Investors are hoping that the Fed will postpone its plans to reduce monthly bond purchases.
The sharp shift in monetary policy forecasts supporting gold prices came after the US Department of Labor said that only 235,000 jobs were created in August. The data did not meet expectations, as economists had forecast a job gain of 720,000 people.
Last week, 15 Wall Street analysts took part in the gold survey – 10 participants, or 67%, voted for the price increase, 2 analysts, or 13%, called for a reduction in prices, and 3 analysts, or 20%, rated gold neutrally at the moment.
637 votes were cast in the online poll. Of these, 416 respondents, or 65%, expected an increase in gold prices during this week. Another 118, or 19%, believe that the price will fall, and 103 voters, or 16%, were neutral.
David Madden, a market analyst at Equiti Capital, said he is watching the US dollar. If the US dollar index declines to 91.75, gold will rise even higher.
He added that the $ 1835 per ounce level remains an important resistance. Gold has tested it three times this year and has not been able to break through it.
Robin Bhar, an independent market analyst, said that he likes gold, but he is neutral about the price dynamics for the near future. He noted that the latest employment data cast doubt on the Fed's plan to reduce bond purchases and a gradual decrease in purchases is not quite relevant. He also warned that investors should consider the current price as a good starting point for long-term tactical investments, and not look for short-term speculative profits.
However, not all analysts are optimistic about the growth of gold in the near term. Mark Chandler, managing director of Bannockburn Global Forex, said that despite the fact that the movement of gold looks positive, he remains skeptical about the stabilization of the US dollar.
