This weekend's Kitco News survey of bankers, analysts, and traders showed that 53% forecast gold prices to increase next week. 26% expect the market to go down and 21% expect prices to move sideways.
Session 2/6, gold sold off when the US Department of Labor released data showing that the economy added 339,000 new jobs last month, more than analysts had forecast. This information caused the world spot gold price to drop by 30 USD to 1,947 USD.
However, for the whole week, gold still gained 0.2%, ending 3 consecutive weeks of decline. Some analysts also think that despite the upbeat jobs data, gold still has room to rise.
The world spot gold price fell sharply in session 2/6.
"The uptrend is clearly visible, considering the price has bounced off the 2-month low hit on May 30," commented James Stanley, senior market strategist at Forex.com. Session 30/5, gold has a time down to 1,932 USD.
Colin Cieszynski - strategist at SIA Wealth Management believes that a weak US dollar will support gold prices next week. However, he does not see the price breaking above the $2,000 an ounce mark.
"Political tensions and volatility in the banking system have cooled down, suggesting that if gold goes up, the rally may not be as strong. $2,000 will still be a major psychological barrier," he said.
For many analysts, the biggest factor affecting gold is still the monetary policy of the US Federal Reserve (Fed). However, there are growing forecasts that the Fed will not raise interest rates at its mid-month meeting. But this is not a signal that the tightening cycle will end.
Some analysts said last month's better-than-expected jobs data would reinforce the Fed's tightening stance. However, others point out that behind this data, the labor market has appeared cracks. The unemployment rate in the US has reached a 7-month high at 3.7%.
"I believe the reference rate has hit the ceiling and this will be a positive factor for gold. However, the current major resistance level is still at $2,070. It is difficult for us to be more optimistic until the price breaks out. above this mark," said Adam Button, currency strategist at Forexlive.com.
Ha Thu (according to Kitco News, Reuters)
