Will gold prices next week receive good signals?

Experts say whether gold prices will receive positive signals next week depends on the meeting of the US Federal Reserve (FED).

Rising expectations of a possible US Fed rate hike could drag down precious metals prices, including gold. However, in the short term, many experts remain optimistic about the gold market.

In fact, in the past week, the rising gold price has overshadowed the USD's dominance, especially after the Chinese Yuan was added to the International Monetary Fund's (IMF) basket of international foreign exchange reserves (SDR). Currently, USD interest rates remain at a record low in the past decades.

“Out of phase” in gold price forecasts

Over the past two weeks, the price of gold for February 2016 delivery on the Comex floor has benefited from a “short-lived recovery during the week”. However, this momentum is not strong enough for the price of gold for delivery to close the week at a positive level.

According to Kitconews, the price of gold futures for February delivery on the Comex floor is still fluctuating at 1,075.70 USD/ounce (equivalent to over 29 million VND/tael), down about 1% compared to last week.

Opinions on gold prices next week are mixed, with most retail investors expecting gold to fall next week and most market analysts expecting gold prices to move higher due to short covering following the Federal Open Market Committee (FOMC) monetary policy meeting, according to the latest Kitco News gold survey of Wall Street and Main Street.

There are many mixed views on gold prices next week (December 14-18).

Kitco News' weekly survey of Wall Street and Main Street experts and investors found that most experts are skeptical about the possibility of gold prices recovering next week.

This week, 450 people participated in Kitco's online survey, of which 116 people (26%) believe that gold prices will rise next week. Conversely, 299 people (66%) are pessimistic about gold prices, and 35 people (8%) are neutral.

Of the 36 market experts surveyed, 18 (50%) said gold prices would rise next week, only 33% said gold would fall, and 17% predicted gold prices would remain unchanged.

"Waiting" for news from the FED meeting

The Fed meeting on December 15-16 will be a key factor in determining the short-term trend of gold prices. However, most market participants are optimistic about the precious metal next week.

After nearly a year of waiting, there are only a few days left until the Federal Open Market Committee (FOMC) meeting, the policy-making body of the US Federal Reserve (Fed), will take place, considering the decision on whether to raise interest rates for the first time since June 2009. According to experts, when this decision is made, it can positively affect gold prices, although it may only be in the short term.

Although there will be some important economic information from the US released next week, investors and experts will only focus on the developments of the FED meeting. Currently, there is an 80% belief that the FED will raise interest rates by 25 basis points in this meeting.

Ole Hansen, head of commodity trading strategy at Saxo Bank, said he expects gold prices to rise next week, as the Fed meeting has caused many speculative investors to focus on the US dollar, while also raising concerns about losing control of the greenback - a factor that has a strong impact on gold prices. Ole Hansen predicted that gold prices could rise to the threshold of 1,100 USD / ounce.

While most analysts believe that gold prices could rise in the short term, some experts are not optimistic that gold will attract investors in the long term. Accordingly, although gold prices appear to be at a bottom, investment funds will not participate heavily in the market until they are confident that gold prices will go up.

Chris Beauchamp, strategist at IG, said he believes gold could rise in the short term, but warned that investors should pay attention to oil prices because this raw material could "drown" all other materials in the market, including gold.

According to Chris Beauchamp, technically, gold can hold the $1,050/ounce mark, and if this threshold is broken, investors will see gold fall to $1,030/ounce, as happened during the 2008 economic crisis./.

According to VOV