Retail investors’ optimistic outlook on gold prices is echoed by Wall Street analysts.

Gold surpassed the $2,000 per ounce mark several times this week, maintaining that level as U.S. traders returned to the metals market following the Thanksgiving holiday. According to the latest Kitco News Weekly Gold Survey, retail investors are optimistic about the upcoming week, a sentiment shared by a majority of market analysts, though a notable minority remains neutral on the short-term outlook for the precious metal.

Mark Leibovit, publisher of the VR Metals/Resource Letter, expressed bullishness for gold in the coming week, emphasizing the importance of the U.S. Dollar’s strength or weakness. He acknowledged the risk posed by a broader market sell-off but anticipated new all-time highs for gold in 2024, favoring direct investment in the metal or its surrogates, with CEF being his preferred choice.

Sean Lusk, co-director of commercial hedging at Walsh Trading, dismissed the possibility of imminent rate cuts and highlighted the inflationary environment. He attributed the continuous rise in gold and silver prices to a flight to safety amid uncertainties. Lusk considered the idea of rate cuts in the first half of the next year as unlikely, emphasizing the Fed’s balance sheet concerns and the need for equity stability. Lusk identified $2,060 as a key resistance level and anticipated a bullish trend for gold, influenced by energy price increases and seasonal support.

In summary, the consensus among analysts and investors suggests a positive outlook for gold, with factors such as the U.S. Dollar’s trajectory, inflation concerns, and seasonal patterns influencing market sentiment.

You May Also Like

More From Author

+ There are no comments

Add yours