Gold prices may increase this week

Last week, world gold prices were at more than 1,833 USD an ounce and analysts predict that the precious metal will continue to increase this week thanks to positive economic data.

After a series of continuous deep price drops due to the US Federal Reserve's (Fed) decision to keep interest rates unchanged in September, world gold recorded its lowest level in 7 months, at 1,810.46 USD per ounce. But thanks to optimistic labor market indicators published last week, the price of this precious metal has recovered, at 1,833.1 USD an ounce.

Analysts and investors participating in Kitco News' survey were optimistic about gold's prospects next week. Among 13 Wall Street analysts participating in Kitco News' survey, 5 experts (38%) forecast gold to increase next week. Five other analysts expect precious metals to decline, while three (23%) say the market will move sideways.

As for investors participating in the online poll, 43% of them expect gold to increase in price. 42% predict a price decrease, while 15% are neutral about the short-term outlook for precious metals.

Kitco News survey results forecast gold prices for the week of October 9-13. Photo: Kitco

Darin Newsom, senior market analyst at Barchart.com, comments on gold prices will increase next week despite the US dollar still trending up.

According to Edward Moya, senior market analyst at Oanda Financial Company, inflation data released by US authorities on Thursday will support gold in the short term, and is an important indicator for investors. market on the Fed's next interest rate management move.

"The inflation index could increase expectations that the Fed has completed its rate hike, and relieve some of the pressure on bond yields, thereby lessening the impact on gold prices," said Edward Moya. .

In addition, the attack on Israel by Hamas forces on October 7 may increase the appeal of gold and safe haven assets, according to Reuters .

Meanwhile, some analysts say gold is at risk of falling further in the face of high bond yields and a rising USD. Marc Chandler, CEO at Bannockburn Global Forex, said that gold has increased in price in recent days. But job growth data nearly double economists' forecasts have caused the US dollar and bond yields to rise, which could impact upcoming gold prices.

The possibility of gold falling to $1,800 an ounce cannot be ruled out, but this expert believes that increased market risks may make the current price an attractive point to buy.