Analysts Unanimous on Gold Rally After Fed Hike
All 16 Wall Street experts surveyed by GN auto markets/commodities expect gold prices to rise next week. Spot gold closed the previous week at 4,377 USD per ounce, ending a three-week decline.
All 16 Wall Street experts surveyed by GN auto markets/commodities expect gold prices to rise next week. Spot gold closed the previous week at 4,377 USD per ounce. This price point ends a three-week consecutive decline for the metal.
The precious metal started the week at 4,340 USD per ounce. Prices fell to 4,261.80 USD on Wednesday afternoon. This low occurred after the Federal Open Market Committee raised interest rates by 0.25 percentage points.
Fed Decision Triggers Initial Sell-Off
Traders sold gold as US Treasury bond yields approached 5 percent. Crude oil prices also rose during the first two days of trading. These factors increased inflation risks and pressured the gold market.
The FOMC voted 12-0 to lift the target interest rate margin to 3.75-4 percent. Sixteen of 18 officials expect further hikes before year-end. Gold prices dropped to the weekly low of 4,261.80 USD immediately after this announcement.
Bullish Sentiment Returns by Friday
Gold regained momentum on Thursday as crude oil prices fell. The US dollar weakened and bond yields cooled down. Investors reduced selling pressure following the Fed meeting.
Oil prices declined for a third consecutive session by Friday. Bond yields retreated from their weekly peak. These conditions allowed gold to reach a high of 4,400.60 USD per ounce.
Investor Polls Show Majority Bullish
A Kitco online poll collected 220 votes from individual investors. 127 participants, or 58 percent, expect gold prices to increase. 52 participants, or 24 percent, predict a decrease.
The remaining 41 investors, representing 19 percent, believe prices will stay flat. The unanimous analyst forecast contrasts with the mixed retail sentiment. Market direction remains tied to US monetary policy expectations.
