Gold prices may accelerate after surpassing $2,000

A weak USD and uncertain macro situation are expected to continue to push gold prices up next week.

This week, the world gold price has repeatedly exceeded the $2,000 an ounce mark. At the end of the trading session on November 24, each ounce cost $2,002.

The price rose more than 1% for the week, marking the second consecutive week of gains, as the dollar weakened as investors bet the Federal Reserve had completed its rate hike.

The latest Kitco News survey of analysts, bankers and gold traders suggests that the bullish sentiment could continue into next week. 54% of respondents expect prices to rise, 15% expect prices to fall and 31% expect prices to remain flat.

Mark Leibovit, editor of VR Metals/Resource Letter, predicts that prices could continue to rise next week as the dollar weakens. He also believes that the precious metal will even reach a new peak in 2024.

World gold prices exceeded the $2,000 mark several times last week.

Sean Lusk, head of hedging at Walsh Trading, sees the market as overly optimistic about the Fed cutting rates. However, he still predicts that the precious metal will continue to rise. "There will be a wave of safe-haven buying. I think gold is gaining momentum. There is a lot of uncertainty in the current situation. That's why the price is going up," he explained.

Technically, Lusk sees resistance around $2,060. “If we hold above the 200-day moving average at $1,920, we could see the market move into the $2,075-$2,160 range,” he said.

Meanwhile, Frank McGhee, director of precious metals trading at Alliance Financial, said gold is overbought and markets are misreading several key factors. "I think the volume is too thin, which is distorting the market. The current rally is unlikely to sustain. I wouldn't be surprised if prices drop $40-$50 when geopolitical tensions start to ease," he said.

Adrian Day, chairman of Adrian Day Asset Management, maintained his view from last week that the market is currently volatile. "I still think it's prudent to stay cautious with gold prices above $2,000. We still have one more Fed meeting this year," he said.

Next week, the US will receive reports on consumer prices, manufacturing, and housing. These figures are all likely to influence the Fed's decision.

According to the CME FedWatch Tool, the market currently predicts the Fed will keep interest rates unchanged at next week's meeting. Meanwhile, the possibility of cutting interest rates from the middle of next year is 64%.

Ha Thu (according to Kitco, Reuters)

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