- Gold trended downward with prices declining 1% during a week that saw the release of U.S. CPI and PPI which showed that inflation pressures persisted. The precious metal has been range bound with prices lacking clear direction as market participants remain divided on whether the Federal Reserve"s terminal rate has indeed been reached, or if more rate hikes remain.
Adrian Day, President of Adrian Day Asset Management, believes that gold is due for some gains next week."If only as a reaction to last week"s decline, gold should rally this coming week," Day said."There is a battle between the negative forces–-primarily tightening including potential additional rate hikes not priced in, and positive forces, notably, the nearing end of rate hikes, particularly in the U.S., before inflation has been conquered.
Meanwhile, 573 votes were cast in online polls. Of these, 320 respondents, or 56%, looked for gold to rise next week. Another 155, or 27%, expected it would be lower, while 98 voters, or 17%, were neutral in the near term.Main Street Bullish Bearish Neutral The latest survey shows that retail investors expect gold prices to trade around $1974 per ounce next week.
Newsom said that from a technical perspective, the December gold futures contract has a number of things going on."Three weeks down on its weekly chart, bringing to mind a possible Benjamin Franklin Fish Analogy: Like guests and fish, markets start to stink after three days/week/months of going against the trend."
Ole Hansen, head of commodity strategy at Saxo Bank, has a neutral perspective on gold prices in the near term."There is no urgency to get into the gold market," Hansen said."We don"t see a trigger for higher prices anytime soon."