Gold prices this week may continue to find the bottom

This week, 12 Wall Street analysts participated in Gold’s survey Kitco and again only a small group of three experts see the potential for gold to rise again in the near future. On the other side, six analysts predict another decline in precious metals. The rest think the price will move sideways.

Meanwhile, a poll of 181 Main Street individual investors showed more optimistic results but not too far apart. 43% predict gold prices will increase next week. The continued pessimistic scenario attracted 39% of votes. The remaining 32 investors forecast that the price will tend to move sideways.

David Morrison, senior market analyst at Trade Nation, said that although the near-term technical picture has improved somewhat, it is still too early to call last week’s close of $2,561 an ounce a bottom. Bulls will be hoping that the sell-off since Donald Trump’s victory last week is over. However, according to this expert, there is nothing to suggest that the above expectations are true as gold has fallen every day in the last week, causing it to lose more than 5% in just four days.

James Stanley – senior market strategist at Forex, assessed that last week was heavily affected and that was the consequence of a widespread wave of profit-taking. He thinks the $2,500 level could become “key” this week and that headwinds are still increasing for gold.

According to this expert, gold was overbought in the past and the current decline is very meaningful. However, investors are also starting to pay attention to Bitcoin when the world’s largest digital currency is trading above 90,000 USD and it seems that money is flowing to this channel. But if in the future, Bitcoin reaches the $100,000 mark, gold will start to look more attractive as many people begin to fear sudden “collapses”.

On the other hand, there are still many experts who are optimistic about the precious metals market. All parties are looking forward to the speed and amplitude of upcoming interest rate cuts by central banks.

On the technical front, Marc Chandler, managing director at Bannockburn Global Forex, noted that gold prices fell for the third consecutive week and that the nearly 4.5% drop was the steepest in the past three and a half years. Therefore, he expects the consolidation phase to be implemented this week and gold can return to the range of $2,600-2,625 an ounce.

Darin Newsom, senior market analyst at Barchart, thinks the hysteria surrounding the US presidential election may be coming to an end. This means that the “chaos after the party” scene will take place and gold may find attraction for investors to seek refuge.