Gold price next week: The decline has not stopped?

December 10, 2023 11:43 Nhat Linh Print article

ANTD.VN - Experts predict that gold prices will continue to fall next week after a sharp drop last weekend.

Last week, with sharp declines at the end of the week, world gold prices gave up almost all the gains made in the early sessions of the week. Spot gold closed the week at $2,004.5/ounce, down more than $130 from the peak reached in the middle of the week and only up $2 for the whole week.

Meanwhile, in the domestic market, the decline was somewhat more limited with SJC gold closing the week at around VND72.80 - 74.00 million/tael, still VND700,000 per tael higher than last weekend.

PNJ gold ring closed the week at 60.70 - 61.80 million VND/tael, an increase of 400 thousand VND/tael during the week.

Gold prices fluctuated strongly last week.

The strong rally earlier this week that helped the precious metal hit an all-time high was largely driven by over-buying as the market overestimated the possibility of a Fed rate cut in 2024.

However, better-than-expected US jobs data on Friday overshadowed the possibility of an early rate cut.

Next week, in addition to the Fed's interest rate decision, along with central bank officials' forecast comments that give investors more clues about the Fed's dot plot, the US Consumer Price Index data for November is also expected to add to market volatility.

Along with that are monetary policy decisions from the Bank of England and the European Central Bank, with interest rates expected to remain unchanged.

Forecasting gold prices next week, most experts believe that the precious metal will continue its downward trend.

Many experts believe that the market reaction to today’s non -farm payrolls and wage inflation data has pushed Treasury yields and the dollar higher, while pushing gold lower, and as a result, the signal from the Fed next week will be less dovish than the market had hoped.

Fifteen Wall Street analysts participated in the Kitco News Gold Survey this week, and only three, or 20%, expected higher gold prices next week. Eight analysts, or 53%, predicted lower prices, while four, or 27%, were neutral on gold next week.

Meanwhile, 729 votes were cast in Kitco's online poll, and market participants are maintaining an optimistic outlook for the coming week despite this week's decline. Specifically, 428 retail investors, or 59%, expect gold to rise next week, another 167, or 23%, predict lower prices, while 134 respondents, or 18%, are neutral on the precious metal's near-term outlook.

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