Investing.com – It continues its upward trend after one of its strongest weekly performances of the year, but midweek highs have split market sentiment on way near the term of the yellow metal.
Spot started trading at $2,722 an ounce, with traders in the Asia and European sessions pushing the metal to the $2,740 range. However, traders in the American session, hesitant, brought prices down to $2,716. Gold quickly recovered half of its losses before rising again to reach $2,757.80 on Wednesday morning.
The increase will not continue
However, US traders went back to selling, sending prices down to $2,710, the lowest level of the week. Despite a few rebounds, gold settled within a narrow trading range around $25 for the rest of the week, ending at around $2,740.
According to a survey conducted by Kitco News, optimism about gold has decreased among analysts and investors, with most of them expecting continued volatility in performance. Mark Chandler, CEO of Bannockburn Global Forex Bank, indicated that gold could be going lower, expecting to see a support level at 2,700.
Colin Ciesinski, chief market strategist at SIA Wealth Management, expects a short-term correction due to the lack of major central bank decisions this week.
On the other hand, James Stanley, chief market strategist at Forex.com, explained that the uptrend is still there, suggesting continued buying on dips with the factors that support gold.
In a similar context, Darren Newsom, a market analyst at Barchart.com, believes that inflation risks and geopolitical uncertainty remain the main drivers of demand for gold. It proves that markets can turn to gold as a safe haven during these challenges.
Important and decisive events
This week, markets will be eyeing the US September jobs report which is expected to show relative weakness, which could support the Fed’s easing cycle. As well as other economic data, including the JOLTS job opportunities report on Tuesday, the US home sales data due on Wednesday, and the Bank of Japan’s monetary policy decision. Thursday will see the release of basic personal consumption expenditure data, personal income and consumption figures, and weekly unemployment claims, while the US jobs report will be Friday’s key indicator.
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2024-10-27 18:15:00
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