After 2 weeks of soaring, gold prices need a long time to consolidate?

11/19/2023 09:37 Nhat Linh Print article

ANTD.VN - After a strong increase over the past two weeks, many experts believe that gold prices will need a long time to consolidate in the context of the demand for safe havens no longer being hot and expectations of interest rate cuts have been reflected in prices in recent times.

Last week, domestic gold prices fluctuated with alternating increases and decreases of around 100,000 - 200,000 VND per tael, but the number of increasing sessions was greater than the number of decreasing sessions.

At the end of the week, SJC gold was commonly listed at around 69.95 - 70.75 million VND/tael. Thus, during the week, SJC gold increased by 650 thousand VND per tael in buying price and increased by 450 thousand VND per tael in selling price.

Non-SJC gold also increased even higher. PNJ listed the weekend gold price at 59.05 - 60.20 million VND/tael, up 700 thousand VND/tael in selling price.

In the world , the spot gold price in the US closed the weekend session at over 1,981, also increasing by nearly 40 USD during the week. Thus, gold has had 2 consecutive weeks of strong price increases with a total increase of over 90 USD.

Gold prices increased sharply in the last 2 weeks

Gold prices spiked last week after economic data was released, but the move was relatively orderly and less dramatic than the previous week.

The latest Kitco News weekly gold survey shows that retail investors remain strongly bullish for next week, while many market analysts have turned neutral on the yellow metal’s near-term outlook.

Of the 12 Wall Street analysts who participated in the Kitco News Gold Survey, only three, or 25%, predicted gold prices would rise next week, while only one, or 8%, predicted gold prices would fall. The vast majority, or 67%, were neutral on gold next week.

According to most experts, after the recent rally, gold is very vulnerable to bad news. Because in fact, expectations of a Fed pause in tightening have been priced into the recent rally in gold, while that is still quite a long way off, at least until next spring.

Others believe gold will need an extended period of consolidation as geopolitical risk-driven buying eases.

On the retail side, 595 votes were cast in Kitco’s online poll. Notably, market participants were even more bullish than in last week’s survey, with 394 retail investors, or 66%, expecting gold to rise next week. Only 125, or 21%, predicted lower prices, while 76, or 13%, were neutral on the precious metal’s near-term outlook.

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