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Gold price is forecasted to move sideways next week

Gold price may continue to be neutral, sideways as investors split on market expectations.

Retail investors continue to be bullish on gold next week, however, Wall Street analysts are almost at the middle of a “crossroads”. The mixed sentiment emerged as the precious metal kept its sideways trend, after prices failed to break through the resistance at $2,000 per ounce.

This week, of the 18 Wall Street analysts who participated in the gold survey of Kitco News39% expect gold prices to rise next week, 33% expect the precious metal to fall, and 28% expect the market to move sideways.

Meanwhile, with nearly 650 retail investors participating in the survey, 56% forecast gold will increase in price next week. 26% expect gold to end the week lower and 18% see the market unchanged.





Kitco's gold price survey results for the week of April 25-29.  Photo: Kitco

Kitco’s gold price survey results for the week of April 25-29. Image: Kitco

Some analysts believe that gold prices may maintain a sideways trend in the near term as the greenback and bond yields continue to rise. Federal Reserve Chairman Jerome Powell confirmed that the US central bank could raise interest rates by 50 basis points and possibly do so at its meeting next month.

According to Adrian Day, president of Adrian Asset Management, gold prices may continue to come under selling pressure as investors react to the Fed’s plan to tighten monetary policy. However, Adrian thinks any pullback should be viewed as a buying opportunity.

Colin Cieszynski, chief market strategist at SIA Wealth Management, also said that gold will be under pressure in the near term as the US dollar moves higher. This week, the greenback’s gauge of strength rose above 101, hitting a new two-year high. Yields on 10-year US bonds are nearing 3% for the first time since 2018.

Meanwhile, Marc Chandler, Managing Director at Bannockburn Global Forex, said gold prices could be more positive in the near-term, however, the upside could be limited.

“I think gold could recover a bit, but a rally to $1,975 could be the top and then the precious metal could pull back towards $1,920,” he said.

Minh Son (according to Kitco)

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