Gold price hits record high, experts still predict continued increase

12/03/2023 11:51 Nhat Linh Print article

ANTD.VN - Although gold prices have continuously increased sharply, setting a new historical record, experts and investors are still very optimistic when predicting the short-term prospects of the precious metal.

Last weekend, gold futures prices on the world market set an all-time record, closing the week with gold for February delivery reaching nearly $2,092/ounce. Spot gold prices also jumped close to the old peak, at $2,071/ounce.

Domestically, gold prices also fluctuated. Gold rings continued to set new peaks with SJC 99.99 gold closing the week at 61.55 - 62.65 million VND/tael. SJC gold also closed the session around the historical high price of 72.70 - 74.00 million VND/tael.

Gold prices are at record highs

Precious metals are benefiting from positive US inflation data and dovish comments from Fed members.

Despite hitting record highs, the latest Kitco News weekly gold survey shows that retail investors and analysts remain bullish on gold prices next week.

Specifically, of the 15 Wall Street analysts who participated in the survey, 8 experts, equivalent to 53%, expected to see higher gold prices next week, while 5 analysts, equivalent to 33%, predicted that gold prices will fall. The remaining two experts, representing 13%, had a neutral view on gold next week.

Meanwhile, 763 votes were cast in Kitco’s online poll of retail investors, and market participants remained bullish with 65% expecting gold to rise next week; only 20% predicted gold would fall; while 15% were neutral.

Gold bulls still maintain that a more dovish Fed will signal a rate cut sooner than previously expected, which would weaken the USD, thereby supporting gold prices.

Furthermore, seasonally, December and January are the strongest trading months for gold, and high demand will be a major driver of the precious metal’s price increase. This is further fueled by the current conditions, when the FOMO (buying with the crowd) effect is strong.

While experts have neutral predictions and predict gold will decrease, they believe that gold needs time to stabilize after the strong price increase in early October and November.

Supportive news appears to have been priced into gold prices, and therefore the precious metal will be vulnerable to more adverse news than expected.

The coming week will be dominated by employment data with the release of the US JOLTS job openings report on Tuesday, ADP private sector employment on Wednesday, the weekly Jobless Claims report on Thursday and Nonfarm Payrolls for November on Friday.

Markets will also pay attention to the University of Michigan consumer sentiment survey and the US ISM services sector PMI.

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