The price of gold will soon return to the $2,000 mark
Wall Street experts expect gold prices to rise this week, perhaps even easily returning to the $2,000 mark.
Broad optimism among analysts, as well as investors, is reflected in the results of the latest weekly gold price survey from Kitco. Gold prices closed last week (March 19) at $1,928 per ounce, down 2.8% from the previous week.
This week, 16 Wall Street analysts participated in Kitco’s gold survey. Where, 9 people predict the price of this precious metal will rise. Only 4 people think that the price of gold will go down, and 3 people think that the price will move sideways. And in an online survey, the percentage of predicted gold price increases is greater with 560 of 822 investors (68%) predicting a positive trend.
Sean Lusk, head of commercial hedging at Walsh Trading, said that while gold fluctuates along with all financial markets, it will still shine as an alternative. He predicts that the price of gold will exceed $2,000 in the near future. “There is uncertainty everywhere and the question remains where funds are putting their money. Investors have to fish,” Lusk said.
Some experts also think that gold prices could easily return to $2,000 when geopolitical tensions can’t go away. “We are watching what is happening in Ukraine. To be honest, nothing is more important to the market. This could change the risk calculus,” said Bart Melek, head of global strategy at TD Securities.
Confidence in gold emerged after the US Federal Reserve (Fed) added 0.25% of its benchmark interest rate, aiming to stem the inflationary spiral without dragging down economic growth. Phillip Streible, Chief Market Strategist at Blue Line Futures says he likes the idea of bottom fishing. He also predicted that the Fed would still be able to follow through on its plan to raise interest rates seven times this year.
On the other hand, Adrian Day, President of Adrian Day Asset Management, assessed that with the current situation, gold prices could fall in the short term, but will still increase in the long term.
“What happens to gold next week really depends on the development of the Ukraine war. The price of gold may go down, but the long-term trend from September is still up due to monetary factors,” he said.
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