Gold price forecast next week: Experts give different opinions

ANTD.VN - Experts seem to find it more difficult to make forecasts about gold prices, in the context of the market lacking directional information.

Last week, domestic SJC gold prices increased for another week, marking the eighth consecutive week of price increase.

At the Saigon Jewelry Company (SJC) store system, the listed price of gold bars is 67.35 - 68.05 million VND/tael (buy - sell), an increase of 350 thousand VND in both buying and selling compared to last week.

At other businesses, the national gold brand is about 100,000 - 200,000 VND lower. The difference between the two buying and selling directions remains at about 700,000 VND/tael.

Globally , gold prices began to improve in the middle of the week when buying pressure appeared at low prices. This precious metal ended the week at $1,914.80/ounce for spot gold and gold futures for December 2023 delivery on the Comex New York floor closed the week at $1,943.3/ounce.

At this price, the precious metal had its first weekly increase after four consecutive weeks of decline before that.

Gold price forecast next week: Experts give different opinions photo 1

World gold prices have recovered in the past week.

During the weekend session, the market welcomed Mr. Jerome Powell’s speech at the Jackson Hole Conference – an event that investors and analysts had been looking forward to all week. However, it seemed that his speech provided very little new information, which is why the gold price only fluctuated slightly, then regained balance and had no special developments.

However, Mr. Powell once again reiterated his determination to reduce inflation by one means or another with the goal of bringing inflation down to the 2% target. "Although inflation has declined from its peak, it remains too high. We are prepared to raise interest rates further if appropriate and will keep policy tight until we are confident that inflation is falling in a sustainable, objective way," the Fed Chairman said.

While Powell noted that the decline in inflation in recent months was “welcome,” he also warned that more progress would be needed. The Fed chairman stressed that monetary policy “will likely play an increasingly important role” in bringing inflation down to 2% as “distortions” related to the Covid-19 pandemic in the economy abate.

Still, the Fed's monetary policy will remain “data-driven,” Powell likened it to “orienting the stars under a cloudy sky.”

Not only that, European Central Bank (ECB) President Christine Lagarde said that interest rates in the region will need to remain high to fight inflation until victory is won. The ECB raised its benchmark interest rate from minus 0.5% to plus 3.75% in a year - the fastest pace since the euro was launched in 1999.

Basically, continued monetary tightening will negatively affect gold prices, but because there is no sudden information, the precious metal market is still in a "wait and see" state, as next week there will be a lot of US economic data released.

The lack of directional information also makes it more difficult for experts to forecast gold prices next week.

Twelve Wall Street analysts participated in the Kitco News Gold Survey this week, and they were evenly split on where gold will go. Five, or 42%, expect higher prices next week, while the same number see lower prices. The remaining two analysts, or 17%, are neutral on gold next week.

Meanwhile, retail investors still want to see higher gold prices; nearly 70% of Main Street survey respondents expect gold to rise next week, with only 20% predicting a decline and the remaining 10% remaining neutral.

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