Individual investors are still optimistic that gold prices will increase, but Wall Street experts are divided in their forecast this week.
Last week, gold prices fluctuated in a narrow range of 2,615 – 2,653 USD per ounce and ended at 2,632 USD at the end of Friday’s trading session, reinforcing the trend of this precious metal market being stable until the end of this year.
Latest survey of Kitco with 12 Wall Street analysts also showing that price fluctuations are unlikely in the short term. Specifically, only 17% of experts believe that the price of this precious metal will decrease, while the ratio of forecasts to increase and move sideways is at the same level of 42%.
Individual investors are more optimistic, with 70 people (60%) predicting a rise in gold prices next week in a 116-vote online poll. The price forecast rate is stable and going down at the same level of 20%.
Gold price forecast for the week of December 9-13. Graphics: Kitco
Marc Chandler, CEO of Bannockburn Global Forex, said gold will still increase in price, as long as it maintains the $2,600 per ounce mark. His forecast is based on the argument that the three G10 central banks are about to cut interest rates. Notably, the Bank of Canada and Swiss National Bank could cut their rates by 25 basis points.
Rich Checkan, Chairman and CEO of Asset Strategies International, said that non-farm employment figures will support the expected interest rate cuts from the US Federal Reserve (Fed), which is beneficial. for gold.
“The market expects interest rates to decrease by another 25 basis points when the Federal Open Market Committee meets on the 17th and 18th. Therefore, I expect gold prices to increase slightly next week,” he commented.
Darin Newsom, senior market analyst at Barchar, pointed out that gold futures prices in February 2025 are trending sideways. “With the potential for increased chaos in the world, I don’t see gold prices falling in the short term,” Newsom said.
Daniel Pavilonis, senior commodities broker at RJO Futures, said that the market is in a holding phase waiting for the Trump administration, unless there is a major international escalation. “We are waiting for some kind of geopolitical game,” he said.
Christopher Vecchio, Director of Futures and FX Strategy at Tastylive is pessimistic in the short term as “speculative positions remain high”. According to him, there is a downside risk due to gold’s tendency to take profits after a strong year.