Will gold prices continue to fall sharply next week?

Many experts predict that gold prices could fall sharply next week as the market is dominated by a lot of negative news.

Gold prices ended last week down 2.6%, extending their decline to four consecutive weeks. At the close of trading, gold prices fell to a five-year low (since April 2010). This has led to pessimistic views on gold prices for the coming week, with most market experts and retail investors tending to reduce their investments in the precious metals market.

According to the results of Kitco News' online survey, out of 364 participants, 247 (68%) predicted that gold prices would continue to fall next week. Only 90 (25%) hoped for a rebound in gold prices, and 27 (7%) expressed a neutral view.

This is the Kitco News survey's prediction for next week's gold price.

The survey, conducted with 19 market experts, also yielded clear results. Thirteen experts predicted that gold prices would continue their downward trend. Only four experts indicated they were optimistic about gold for the coming week.

Furthermore, Bernard Dahdah, a precious metals expert at Natixis, also believes that there is currently not much positive information for the gold market. Instead, there is too much negative information, with the impact of the Greek credit crisis spreading; the slowdown of the Chinese economy; and the possibility of higher-than-expected interest rate hikes by the Fed, causing the US dollar index to strengthen.

Nick Exarhos, Senior Economist at CIBC World Markets, believes that the Fed is likely to raise interest rates higher than expected, and this will be a negative factor for gold, at least in the short term. “With Chair Yellen’s comments, the USD will continue to strengthen, and that will make a recovery in gold prices even more difficult,” he said.

Some analysts also note that the technical pattern of gold will play a significant role in influencing gold prices next week. This is because, after falling to its lowest level in the past five years, many analysts are expecting gold to return to a new price level of around $1,100/oz in the medium term.

"Gold prices remain under pressure from the rising US dollar index amid the prospect of an early interest rate hike and deteriorating technical analysis," said Phillip Steible, senior market strategist at RJO Futures.

Gold prices fell sharply over the weekend.

Even news that China increased its official gold reserves by 57%—the first increase in six years—was not enough to boost optimism in the gold market.

Jessica Fung, a commodities analyst at BMO Capital Markets, said that China's gold reserves have had a significant impact on global gold prices. She predicts that gold prices could fall to around $900/oz before rebounding. "They impacted the gold market once in 2013, and I think they're hesitant to jump in again until prices rise enough for them to make a real profit," Jessica Fung said.

However, not all analysts have a negative outlook on gold prices next week. Some note that sharp sell-offs can easily trigger a rebound in interest in gold when everyone thinks prices are going down.

Adam Button, a currency analyst at Forexlive.com, says that gold is attracting significant attention as the market anticipates a price drop. Investors are seizing the opportunity to buy, giving gold a chance to rebound. However, this will likely happen, but not in the short term, at least not for the next few weeks.

There will be very little economic data released next week. Some sales data to be released could help support the view that the US economy is improving, further strengthening the Fed's resolve to raise interest rates soon.

According to Vov.vn