The gold market is in a precarious position. The latest weekly survey of the gold market indicates that there is little optimism in the market.
In the short-term analysis, Wall Street analysts are a little optimistic because they consider the US dollar overvalued; Bearish sentiment among retail investors rose to a multi-year high.
Bearish sentiment emerged as the US dollar closed the week at a new 20-year high above 109 points.
Darin Newsom, president of Darin Newsom Analysis, said he remains optimistic that the gold market could see some lucrative hunters. He added, however, that the medium-term and long-term outlook looks bleak. He emphasized that despite the increasing daily volatility on the gold market, the trend will be maintained.
A total of 17 market experts took part in the survey on Wall Street last week. Seven analysts, i.e. 41%, said that the gold trend is bullish this week. est analysts, i.e. 35%, said, evv bearish trend. those analysts, i.e. 24%, stated that they are neutral about the precious metal.
When it comes to retail, the online survey had 898 respondents. A total of 337 voters, i.e. 38%, spoke in favor of an increase in the price of gold. Dalch 412, i.e. 46%, predicted a decline in gold. The remaining 149 voters, i.e. 17%, were in favor of the fair market.
But some analysts are optimistic. According to Colin Cieszynskho, chief market strategist at SIA Wealth Management, monetary policy decisions by the Bank of Canada and the European Central Bank this week may focus on the US dollar.
The Bank of Canada may raise rates by 50 or 75 basis points over the years. In Europe, there are rumors that the ECB will raise rates by 75 basis points.
Adrian Day, president of Adrian Day Asset Management, said selling gold below $1,700 is fine. And I see the prices of the precious metal optimistically, because the euro may experience short-term b momentum.
Day added that in the long term, gold will regain its luster, and investors will realize that the central banks of the world are not able to reduce inflation. Neither the Federal Reserve System nor the European Central Bank can reduce inflation to the target level, nor would they trigger another recession. That’s good for gold.
On the bearish side, analysts note that gold is moving around very uncertainly. If its price falls below $1,685, it could signal the end of a multi-bho trend.
Author of the link: Tm Instaforex
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