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19.02.202412:56 Forex Analysis & Reviews: Analysts doubt gold's strength this week

Exchange Rates 19.02.2024 analysis

The latest weekly gold survey indicates that Wall Street and Main Street are once again diverging in their price expectations. A significant portion of retail investors sees potential growth for the week, while analysts find compelling reasons for the decline in precious metal prices this week.

Exchange Rates 19.02.2024 analysis

Adam Button, head of currency strategy at Forexlive.com, predicts a decline in prices in the near future. From his perspective, this will occur due to the seasonal adjustment of recent consumer price index and producer price index data. The gold market finds it challenging to contend with the wave of rising yields on Treasury bonds and a stronger U.S. dollar.

Mark Leibovit, publisher of the VR Metals/Resource Letter, expects price growth after a probable correction, noting that the U.S. still faces significant economic and political risks domestically.

According to Adrian Day, President of Adrian Day Asset Management, gold will remain in a sideways channel until a decision is made to lower interest rates.

James Stanley, senior market strategist at Forex.com, remains optimistic about the short-term prospects of the precious metal.

Everett Millman, Chief Market Analyst at Gainesville Coins, highlighted Friday's rebound, adding that with the U.S. markets closed on Monday for Presidents' Day and Chinese markets opening after the Lunar New Year, short-term preparation for higher price movements is advisable. China will trade for almost the entire session before U.S. markets open on Tuesday.

However, according to Millman, as the only significant release this week is the FOMC protocol, he believes that gold prices are more likely to fall than rise.

The opinion of Ole Hansen, head of commodity strategy at Saxo Bank, aligns with Millman's expectation that China will be on the buying side after the holiday. Nevertheless, gold will still face challenges amid weakened expectations of interest rate cuts.

The latest gold survey was participated by 14 Wall Street analysts. Only three experts, or 21%, anticipate price increases this week. Eight analysts, constituting 57%, expect a decrease, while three experts, or 21%, predict a sideways trend.

In an online poll with 221 votes, the majority remains optimistic. 94 retail investors, making up 42%, expect an increase in gold prices this week. Another 72, or 33%, forecast a decrease, while 55 respondents, or 25%, remain neutral.

Exchange Rates 19.02.2024 analysis

*A análise de mercado aqui postada destina-se a aumentar o seu conhecimento, mas não dar instruções para fazer uma negociação.

Irina Yanina,
Analytical expert of InstaSpot
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