Gold closed last week at 3,449.19 USD per ounce, a 0.89% daily increase and a 3.26% weekly gain. Kitco's weekly survey reveals continued optimism among industry experts regarding gold's short-term prospects.
Of the 14 Wall Street market analysts surveyed, 12 anticipate a continued upward trajectory for the precious metal. The remaining two predict stable prices, with none forecasting a decline.
Kitco's online poll of 179 individual investors revealed that 121 (68%) expect gold prices to rise this week, while 17% anticipate a decrease, and 16% predict stable prices.
 |
Gold bars in a vault in Munich (Germany), 1/2025. Photo: Reuters |
Gold bars in a vault in Munich (Germany), 1/2025. Photo: Reuters
Expert optimism stems from expectations of a Federal Reserve (Fed) rate cut in September, following Fed Chair Jerome Powell's statement on 22/8.
Rich Checkan, President and CEO of Asset Strategies International, predicts continued growth for gold. "Nearly 87% of the market believes the Fed will cut rates in their September meeting, giving gold a foundation for further advancement," Checkan said.
Checkan notes that gold has surpassed the psychological threshold of 3,400 USD per ounce, typically a profit-taking point, yet upward momentum persists. Tensions between US President Donald Trump and Fed Governor Lisa Cook are also driving funds away from the USD and towards gold as a safe haven. He believes that the return of investors after the holiday period will further fuel this trend.
Alex Kuptsikevich, senior analyst at FxPro, forecasts this week's price to fluctuate between 3,400 and 3,430 USD. He suggests that if gold surpasses the resistance level of 3,430 USD, the market could return to its upward trend after months of stagnation. However, risks remain, with the possibility of a correction to the 3,300-3,315 USD range not entirely ruled out.
In a less optimistic scenario, Adrian Day, President of Adrian Day Asset Management, suggests a potential retreat this week as gold nears its peak of 3,450 USD. However, he views this as a short-term adjustment rather than a significant decline.
According to Day, buying power is returning. Catalysts like the Fed's rate cut decision this month or a stock market downturn could trigger a liquidity breakthrough.
Trong Hieu (Kitco)
