Gold price next week: What do experts predict?

05/14/2023 07:49 Nhat Linh Print article

ANTD.VN - The fact that gold prices were stuck in a narrow range last week makes it seem more difficult for experts to predict the prospects for the precious metal next week.

Last week, world gold prices were stuck in a narrow range. Spot gold closed the week at $2,010.5/ounce, down $7 from the end of last week.

Domestically, SJC gold prices were listed at around VND66.55 - 67.25 million/tael at the end of the week, up VND200,000 per tael compared to the previous weekend. SJC 99.99 gold also increased by about VND200,000 per tael, to VND56.35 - 57.53 million/tael.

The latest Kitco News weekly gold survey shows that retail investors remain bullish on gold, with expectations that prices could retest resistance just below $2,050 an ounce.

Specifically, 57% of retail investors believe that the price of this precious metal will increase next week, 24% predict a decrease and the remaining 18% are neutral.

Meanwhile, Wall Street analysts are divided with an even split between bullish and bearish forecasts, both at 42%; the remaining 16% are neutral.

Gold price next week: What do experts predict? photo 1

Gold prices still receive long-term support

However, most experts agree that gold prices will continue to rise in the long term as the precious metal continues to receive solid fundamental support due to widespread economic uncertainty.

Still, next week, volatility driven by speculative positioning could push gold prices lower as investors react to moves in the US dollar.

Notably, experts believe that a correction next week will be healthy and not surprising given the gains made over the past 6 months. Support may be at $1,950, but dip-fishing pressure will appear before that price level.

The bullish sentiment in gold is further reinforced by looking at gold futures trading, with December gold futures trading above $2,070 an ounce. June gold futures are currently trading around $2,016.

This means investors are willing to pay a higher price for gold later in the year. The market expects weak economic conditions to force the US Federal Reserve to cut interest rates later this year.

Next week, financial markets will continue to monitor negotiations on raising the US debt ceiling. A meeting between US President Joe Biden and Republican House Speaker Kevin McCarthy was scheduled for May 12 to find a solution to the debt ceiling issue, but it has been postponed to next week.

Rep. McCarthy stressed that the postponement of the meeting was not a sign that the talks had hit a snag, but he believed negotiators needed to continue talking before the leaders met again.

However, Mr. Kevin McCarthy criticized President Biden and Senator Schumer for being deadlocked, they have no plan, no proposed savings.

There are growing calls for the US to avoid default. Technically, the US debt ceiling was set to hit $31.4 trillion in January 2023. The US Treasury Department at that time had to take “extraordinary measures” to ensure the federal government could continue to pay for its operations.

In her latest statement on May 11, US Treasury Secretary Janet Yellen urged the US Congress to raise the federal debt ceiling, currently at $31.4 trillion, to prevent a debt crisis that threatens the global economy and shakes the position of the world's leading economy.

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