Experts are pessimistic about the gold market situation next week.

International experts believe that the gold market will fall to 2,680 USD/ounce due to concerns about tax and tax cut policies after Mr. Trump is elected.

Gold market fluctuates strongly after US presidential election

The US presidential election has had a strong impact on the markets this week, including the gold market. Surprisingly, the election results were announced very quickly, gold prices fell sharply and made traders anxious about the next direction of gold.

Spot gold started the week at $2,739.34 an ounce. Prices fluctuated in a narrow $20 range for the first half of the week, from a low of $2,726 to a high of $2,748 on Election Day morning.

The gold market fluctuated strongly last week. Photo: Kitco News

The reason for the sharp drop in gold prices came around 1 a.m. ET on Wednesday, when key swing states began to be declared in favor of Republican candidate Donald Trump, making vice presidential candidate Kamala Harris' chances of winning virtually non-existent.

Spot gold responded by falling from $2,739 an ounce to $2,700. After a brief recovery to $2,730 an ounce, prices eventually fell sharply and broke support to $2,659 an ounce when North American markets opened Wednesday morning.

Gold prices attempted to recover in the late morning, rising to a high of $2,676 an ounce but then continued to fall as the trading day progressed. Gold prices then hit a low of the week at around $2,648 an ounce.

World gold price developments in recent times. Photo Kitco News

The next day, gold prices began to rise more steadily as the dollar and bond yields retreated from post-election highs. Gold hit resistance at $2,700 an ounce twice in North American trading before falling to $2,690 after the Federal Reserve announced an expected 25 basis point interest rate cut.

But this week’s story isn’t over yet. During a press conference following the Federal Open Market Committee (FOMC) meeting, a tense exchange between Fed Chairman Powell and reporters sent gold soaring to $2,707 in a matter of minutes. After two failed attempts to break $2,710, gold fell to $2,680, where it remained through Friday’s session.

What do experts predict will be the price of gold next week?

The latest Kitco News weekly gold survey shows that sentiment among industry professionals as well as retail traders has turned quite bearish after many months.

Latest Kitco News Weekly Survey. Photo: Kitco News

Darin Newsom, senior market analyst at Barchart.com, said prices will fall: " While I think the market will find some new long-term hedging from investors, December futures have not yet broken out of their near-term downtrend on the daily closing chart. This opens up the possibility of further declines early next week. It is interesting to note that December gold found some support near the previous closing high of $2,676.30 (October 11) this week, having posted a daily closing low of exactly $2,676.30. Perhaps it is just a technical anomaly, but interesting nonetheless ."

According to David Morrison, senior market analyst at Trade Nation, technical charts show that gold will fall further.

" Gold prices fell on Wednesday as Trump was elected US President. Much of the sell-off was likely due to the surge in the US dollar following the news, which was likely due to a sharp rise in bond yields as investors feared the tax and tax cuts Trump promised would lead to a surge in inflation ," said David Morrison.

Since then, the US dollar and bond yields have returned to more reasonable levels, Morrison said. " Gold prices remained in the $2,635-$2,675/ounce range, which was resistance in the last week of September and the first week of October. Gold prices tried to break back above $2,700/ounce but failed to hold. Instead, gold prices fell in the Asia- Pacific session until finding support at $2,680/ounce ."

" Silver is also under pressure despite trying to push above $31 an ounce ," Morrison noted. " It will be interesting to see how both gold and silver perform in the coming week. Will the uptrend be re-established or should traders prepare for another pullback? Looking at the daily MACD lines on both metals, we see the momentum is bearish."

" Prices will go lower ," said Adam Button, chief currency strategist at Forexlive.com. " I think there will be some post-election correction, but I will be watching closely for signs of who will be the next Treasury Secretary. Trump nominated Mnuchin on November 29 and Biden picked Yellen on November 23. So maybe not next week but soon, if the nominee is John Paulson, a big gold speculator, I expect gold prices to rise ."

On the other hand, James Stanley, senior market strategist at Forex.com, sees gold prices going up: " Gold prices look uncertain after the election, but could rally to $2,650/ounce on spot prices and push back to $2,700/ounce. Normally, with prices like this, I would lean bearish, but given how strong gold prices have been this year, I'm not ready to reverse just yet ."

Source: https://congthuong.vn/chuyen-gia-bi-quan-ve-tinh-hinh-thi-truong-vang-trong-tuan-toi-357887.html