Really good! This is Gold Price Prediction Next Week !

 

Really good! This is Gold Price Prediction Next Week !

Jakarta - The bullish sentiment remains strong in the gold market. There is a growing signal that the positive trend of precious metals will continue even though there is no new fundamental news to boost prices.

These are the latest results from the Kitco News weekly gold survey , which was launched on Sunday (20/09/2020). The majority of Wall Street analysts and Main Street investors believe gold will remain bullish despite strong neutral voices in both surveys.

"Gold market bulls need a fresh spark of fundamental news to restart a short-term upward trend in prices," said Jim Wyckoff, senior technical analyst at Kitco.com.

This week, 14 Wall Street professionals took part in the latest Kitco survey. Among them, seven voters, or 50%, called for gold prices to rise. Then six analysts, or 43%, predict gold prices will be stable, and the rest predict lower gold prices next week.

Meanwhile in the Main Street investor poll there were 1,367 votes participating. Of that number, 829 respondents or 60% believe that the price of gold will increase next week. Then another 290 or 21% said they were neutral, while 248 voters or 18%, were bearish.

This week the market is clearly stuck in a narrowing consolidation pattern. Gold futures last December traded at US $ 1966.60 per ounce, up nearly 1% from the previous week. In the previous survey, retail investors were bullish on gold, while Wall Street analysts were mostly bearish.

Even though gold is stuck in the grinder, Richard Baker, editor of Eureka Miner's Report, said that the low volatility and technical prospects suggest higher gold prices in the near term.

"Comex is likely to reach $ 1,980 per ounce next week and $ 27.36 per ounce silver," he said.

As information, central bank gold demand has slowly declined until 2020, with July net purchases falling to their lowest level since December 2018. However, the World Gold Council (WGC) said the sector remains an important pillar of support for the gold market.

The WGC said that data on foreign reserves from the International Monetary Fund (IMF) showed that the central bank collectively bought 8.2 tonnes of gold in July. So far, in 2020, central banks have purchased more than 200 tonnes of gold.

In a recent interview with Kitco News, Shaokai Fan, head of central bank relations at the World Gold Council, said that although central bank demand has slowed over the summer, he does not expect any net selling action any time soon.

"The basic reason central banks have bought gold over the last ten years has not really gone away," he said.

"You have to remember that central banks are still looking to diversify their reserve assets away from the US dollar, particularly emerging market central banks, whose portfolios are dominated by the US dollar. Another thing is the lower negative interest rates that many central banks face on their sovereign bond portfolios. , "he added.

Although central banks may not have bought as much gold as they did in the last two years, data from the World Gold Council suggests they have a tighter grip on their gold. In a report published at the beginning of the month, WGC noted that the gold lease rate, the rate leased by the central bank, has consistently decreased.

The report notes that rental rates between 2010 and 2019 averaged 0.24%, down from the 0.54% average seen in the previous ten years. From 1989 and 1999, the lowest rate averaged 1.4%.

Fan said that it is not surprising that central banks want to keep their gold in this era of uncertainty.


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