Gold prices may continue to rise next week

A weak dollar and expectations that the Fed will stop raising interest rates will help the gold market maintain its upward momentum, after gaining 0.2% this week.

A Kitco News survey of bankers, analysts and traders this weekend found that 53% expect gold prices to rise next week, 26% expect the market to fall and 21% expect prices to remain flat.

On June 2, gold was sold off when the US Department of Labor released data showing that the economy created 339,000 new jobs last month, more than analysts expected. This information caused the world spot gold price to drop by 30 USD, down to 1,947 USD.

However, for the week as a whole, gold still rose 0.2%, ending three consecutive weeks of declines. Some analysts also said that despite the optimistic employment data, gold still has room to rise.

World spot gold prices fell sharply in the session on June 2.

"The uptrend is clear, considering that prices have broken out of a two-month low set on May 30," said James Stanley, senior market strategist at Forex.com. On May 30, gold fell to $1,932.

Colin Cieszynski, a strategist at SIA Wealth Management, said that a weaker US dollar will support gold prices next week. However, he does not see prices breaking above $2,000 an ounce.

" Political tensions and banking system volatility have eased, suggesting that if gold does go up, the rally may not be as strong. $2,000 will still be a major psychological barrier," he said.

For many analysts, the biggest factor affecting gold remains the monetary policy of the US Federal Reserve (Fed). However, there are increasing predictions that the Fed will not raise interest rates at its meeting in the middle of next month. But this is not a signal that the tightening cycle will end.

Some analysts said last month’s better-than-expected jobs data would reinforce the Fed’s tightening stance. But others pointed to cracks in the labor market behind the data. The U.S. unemployment rate hit a seven-month high of 3.7 percent.

"I believe the benchmark interest rate has hit its ceiling and this will be a positive factor for gold. However, the major resistance level is still $2,070. It is difficult to be optimistic until the price breaks above this level," said Adam Button, currency strategist at Forexlive.com.

Ha Thu (according to Kitco News, Reuters)

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