The Hamas-Israel conflict escalates, and the Fed's decision to stop raising interest rates could cause gold prices to continue to rise next week.
The world gold price ended the trading session on November 3 at $1,992.5 an ounce, after surpassing $2,000 at one point during the session. Analysts predict that the precious metal's upward momentum will continue next week due to concerns about conflict in the Middle East and most major central banks in the world, including the US Federal Reserve (Fed), stopping to raise interest rates.
Gold prices tend to move inversely to interest rates, since the metal does not pay fixed interest. So if the Fed does not continue to raise rates, gold will benefit.
Analysts and investors surveyed by Kitco News are bullish on gold next week. Of the 15 Wall Street analysts surveyed by Kitco News, nine (60%) see gold rising next week, while only one sees it falling. Five (33%) see the market moving sideways.
Among investors participating in the online poll, 64% expect gold prices to continue to rise, 22% think gold will fall, and 14% are neutral about the short-term outlook for the precious metal.
Kitco News Gold Survey: Gold Price Outlook for Next Week. Source: Kitco News
Adrian Day, president of Adrian Day Asset Management, also sees gold prices rising next week. He said conflict in the Middle East, difficulties in the bond market and hesitation from the Fed could push gold prices higher.
Darin Newsom, senior market analyst at Barchart.com, sees gold prices rising further next week and possibly continuing their rally into December, although it needs to break above $2,019.70 an ounce to avoid sideways trading.
Marc Chandler, CEO at Bannockburn Global Forex, has switched from a neutral stance to predicting that the precious metal will break the $2,000 mark next week.
This month, gold prices have increased sharply due to the Israel-Hamas conflict. On October 27, the price reached $2,009 - the highest since May. In total, the price has increased by 8%, equivalent to nearly $150, since the conflict in the Middle East broke out on October 7.
Minh Anh (according to Kitco News )
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