Weekly Gold Ratings at Kitco Sunday, April 11
According to Kitco News, optimism has been boosted again by rising global gold prices. An ounce of global gold has been able to defend its previous support and seems to be looking to cross the key and psychological level of $ 1750. That's why market participants expect the global medium-term ounce trend to be bullish. However, some analysts have warned that it is too early to talk about the XAUUSD uptrend.
This week, 15 Wall Street activists took part in the weekly evaluation of the Kitco site. Meanwhile, 60% of participants predict that the global gold ounce trend will be bullish. Another 20 percent predict a downtrend and the rest expect a trend-free or neutral market. Meanwhile, 1,201 Main Street investors took part in an online poll. 65% are in favor of an uptrend, 20% are in favor of a downtrend and 16% are in favor of a trend-free market.
Optimism for a short-term uptrend also strengthened among small investors and market traders after the global ounce price of key support jumped below $ 1,700. Last week, the price of an ounce of global gold climbed to around $ 1760, however, it ended the week below $ 1750. On Friday, we saw intensifying sales pressures in the gold market. The rise in Treasury yields and the strengthening of the US dollar in response to PPI data (manufacturing sector inflation) were the main reasons for the slight decline in the global ounce gold price. Inflation in the US manufacturing sector reached 4.2 percent per year, the fastest growth since September 2011.
Comments of market participants
Adam Button Senior Market Strategist at Forexlive.com
The closing of the global gold price above $ 1755 could be a confirmation of the formation of the twin floor pattern. In this case, the price of an ounce of world gold will rise to $ 1840. "But if the price of an ounce of global gold fails to rise, it will fall to $ 1,676 and below."
Charlie Nedoss Senior Market Strategy at LaSalle Futures Group
This professional activist no longer pays attention to the widespread selling pressures in the treasury securities market (rising bond yields). In his view, the Federal Reserve is not looking to raise interest rates in the near future. "The Fed wants to see real growth in economic indicators and then think about raising interest rates. I think this will stop the US dollar from rising and support the ounce of global gold. "Especially since the US dollar has not yet been able to stay above the 200-day moving average." Ndos is optimistic about the increase in the price of an ounce of global gold. Gold was able to maintain its position above the 200-day moving average. "Gold has hit the price floor of the oscillating range and it seems that this time it is time to touch the ceiling of this range. "I expect the price of an ounce of global gold to cross the $ 1760 resistance level."
Darin Newsom Independent Market Analyst
According to the activist, at least in the medium term, the rising strength of the US dollar has weakened. According to him, the probability that the price of an ounce of world gold will reach higher levels is serious. Gold and the US dollar are inversely related.
Marc Chandler, Senior Market Strategist at Bannockburn Global Forex
This professional activist is not very optimistic about the upward and short-term trend of gold. "Next week, the rise in the value of the US dollar and the rate of return on Treasury bonds may prevent the price of an ounce of gold from rising. US economic and inflation data are on the rise. The break in the $ 1730-1728 support area could push the global ounce price up to $ 1,700.
Adrian Day, Director of Adrian Investment Company
The professional activist believes that the trend of global ounce of gold in the coming week will be neutral. According to him, the market will fluctuate in a limited range. "I doubt gold can make a significant move in the next few weeks," he said. "I think the price of gold will fluctuate between $ 1,680 and $ 1,745."