The gold price has been giving up much of its recent highs despite positive forecasts. The metal made its way steadily downwards after hitting an all-time high at $2,150 per ounce during the Monday trading session in Asia. Previously, asset prices dropped to support of $2,000, which made most analytics turn bearish. At the same time, retail investors try to keep their heads cool and remain bullish.
According to recent surveys. More than half of Wall Street experts (53%) became bearish. Oppositely, retail investors still expect the yellow metal to make another price rally. 59% of them remain bullish. Analysts recommend market participants to stay cautious taking into account the USD’s last week's blow-off.
The greenback went up together with treasury yields after the wage inflation data and nonfarm payroll release. Besides, the FED might also make corrections in the gold price movement in the next several weeks.
While most experts turned bearish, some analysts believe the metal is about to see another big rise by the end of the next week. The market has already experienced unexpected reversals and bear traps. So, we might see something similar soon enough. However, we should still consider the possibility of a backdrop. Anyway, the two main gold price drivers will be FOMC and CPI. They will define the further movement during next week.
While retail investors and analysts joined either the bullish or bearish side, some experts remained neutral. If we have a look at the fundamental long-term outlook, the metal seems to be quite a positive instrument. The only problem with the asset is that gold is extremely sensitive to news and geopolitical changes. This time, we are having a stronger-than-expected jobs report. This fact can mitigate soon rate cut expectations.
At the same time, even if the price drops under the support of around $1980 per ounce, it might create perfect bullish opportunities. Further demand will push the price high again with the hope the FED will eventually stop tightening. The gold did kick off with a blast. However, the price keeps sliding down this week featuring the spot gold dropping by 3.29%. Last traded at $1,995.39 per ounce, down 1.60% at the moment of writing.
May the trading luck be with you!
