The downtrend is increasingly clear after the FED spoke up
Some analysts believe that the coming time will be a challenge for gold. The jobs data released last weekend seemed to "pour cold water" on expectations that the US Federal Reserve (Fed) would cut interest rates.
The number of jobs increased higher than community expectations with the unemployment rate decreasing. The gold market pushed back expectations of interest rate cuts to May, instead of March as previously priced.
Phillip Streible, market strategist at Blue Line Futures, explained that after the jobs report, Fed Chairman Jerome Powell is unlikely to change his stance on another rate increase in 2024.
Additionally, upcoming US economic update forecasts, including interest rate forecasts scheduled at next week's key meeting, are likely to firm the gold market.
In the most recent update, the US Central Bank will likely make two interest rate cuts in 2024. According to the CME FedWatch Tool, the market sees a nearly 60% chance of a rate cut. The first will take place in March 2024.
November consumer price index data could also add to precious metals market volatility. Some analysts believe that if mechanical generation remains above 3%, the Fed maintains its tightening trend.
Gold price forecast
Last week, 15 Wall Street analysts participated in Kitco News' gold survey. As a result, only 20% forecast that gold prices will increase in the near future. 53% of analysts predict the price will decrease, while the remaining 27% have a sideways view of gold price.
Meanwhile, 729 votes were cast in Kitco's online poll. Of these, 428 retail investors, equivalent to 59%, expect gold to increase in the near future. Another 167 people, or 23%, predicted lower prices. The rest have the view that gold price will go sideways.
The number of jobs increased higher than community expectations with the unemployment rate decreasing. The gold market pushed back expectations of interest rate cuts to May, instead of March as previously priced.
Phillip Streible, market strategist at Blue Line Futures, explained that after the jobs report, Fed Chairman Jerome Powell is unlikely to change his stance on another rate increase in 2024.
Additionally, upcoming US economic update forecasts, including interest rate forecasts scheduled at next week's key meeting, are likely to firm the gold market.
In the most recent update, the US Central Bank will likely make two interest rate cuts in 2024. According to the CME FedWatch Tool, the market sees a nearly 60% chance of a rate cut. The first will take place in March 2024.
November consumer price index data could also add to precious metals market volatility. Some analysts believe that if mechanical generation remains above 3%, the Fed maintains its tightening trend.
Gold price forecast
Last week, 15 Wall Street analysts participated in Kitco News' gold survey. As a result, only 20% forecast that gold prices will increase in the near future. 53% of analysts predict the price will decrease, while the remaining 27% have a sideways view of gold price.
Meanwhile, 729 votes were cast in Kitco's online poll. Of these, 428 retail investors, equivalent to 59%, expect gold to increase in the near future. Another 167 people, or 23%, predicted lower prices. The rest have the view that gold price will go sideways.
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