Gold price next week: Experts predict pessimism after strong fluctuations

ANTD.VN - The number of experts predicting a decrease in gold prices is overwhelming, while investors are also less optimistic about the prospect of gold prices next week.

Last week, the financial market in general and gold prices in particular fluctuated strongly around the US presidential election.

International spot gold prices started the trading week at nearly $2,740 an ounce and spent the first part of the week fluctuating within a narrow range of $20.

Gold prices plunged on Wednesday as states announced election results in favor of Republican candidate Donald Trump, at one point dropping more than $90 an ounce. The precious metal hit a low of around $2,648 an ounce before steadily recovering to test the resistance level of $2,700 an ounce.

Gold saw some more volatility over the weekend as the US Federal Reserve (Fed) announced a 25 basis point interest rate cut as expected and some important US economic data was released showing that inflation and employment targets were not negatively affected. Spot gold ended the week trading around $2,684/ounce, down nearly $56 for the week, the deepest decline in the past 6 months.

Gold prices both domestically and internationally fluctuated strongly last week.

Domestically, gold prices also fluctuated strongly, especially in Wednesday's trading session when SJC gold fell by 6 million VND/tael, with the buying price dropping by 4.5 million VND/tael and the selling price dropping by 4.5 million VND/tael, widening the buying-selling gap to 4.5 million VND/tael. Gold rings also fell by 4.5 million VND/tael during the session.

In Thursday's session, gold recovered a bit but could not regain what had been lost before. SJC gold ended the trading week at a buying and selling price of around VND82.00 - 85.80 million/tael. Compared to the end of last week, the price of this gold brand decreased by VND5.5 million/tael for buying and VND3.7 million/tael for selling.

Similarly, gold rings this week also recorded a decrease of up to 5 - 5.4 million VND/tael for buying and a decrease of over 4 million VND/tael for selling.

SJC 999.9 ring gold closed the week at 82.00 - 84.80 million VND/tael. At other large enterprises such as DOJI, Bao Tin Minh Chau, Phu Quy, PNJ... the afternoon ring gold price was around 83.40 million VND/tael; the afternoon selling price was around 85.15 million VND/tael.

The sharp fluctuations in domestic gold prices have led to a fluctuation in trading. On the day when gold prices fell sharply, many people rushed to sell gold, forcing businesses to sharply reduce their buying prices, and at some points, buying was temporarily suspended at some stores.

Looking ahead to next week’s gold price forecast, the latest Kitco News weekly gold survey shows overwhelmingly bearish sentiment from industry professionals, while retail traders’ optimism has also dropped into the minority for the first time in months.

Many experts believe that the tariffs and tax cuts that Mr. Trump has proposed, if implemented, could boost growth but would lead to a resurgence in inflation, causing the dollar and US Treasury yields to rise.

Additionally, experts also believe that gold has had a major rally and technically, it is due for a correction.

Meanwhile, on the other hand, those predicting gold prices to rise believe that gold overreacted to the election results last week and that it will soon rebalance.

Of the 14 analysts who participated in the Kitco News Gold Survey, only three, or 21%, expect gold prices to rise next week; while nine, or 64%, predict prices will fall. The remaining two, or 14%, expect gold prices to consolidate.

As for retail investors, 249 votes were cast in Kitco’s online poll. 114 retail traders, or 46%, predict gold prices will rise next week. It’s been a long time since the number of investors predicting gold prices will rise has been below 50%.

Meanwhile, another 91, or 36%, expect the yellow metal to trade lower. The remaining 44 investors, or 18%, expect gold to trend sideways in the near term.

Source: https://www.anninhthudo.vn/gia-vang-tuan-toi-chuyen-gia-du-bao-bi-quan-sau-dot-bien-dong-manh-post595050.antd