Will Gold Price Hit Another Record High Next Week?

$3000 Gold Price
Published on: May 17, 2024
Author: Caroline Kong

The week passed saw plenty of significant economic data and Fed comments, for the gold market and investors to digest. As Fed Chairman Powell made it clear after Tuesday’s PPI report that there was no need to raise interest rates again this year, gold bulls cheered.

After Wednesday’s CPI report showed an improvement in inflation from the previous month, gold prices moved decisively back above $2,400 per ounce during Friday’s trading session (17 May).

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The latest Kitco News Weekly Gold Survey shows that the vast majority of industry experts believe that gold prices could reach or exceed their all-time highs. Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, said that both the U.S. dollar and Treasury yields appear to have retreated. After breaking through the $2,400 resistance level, there doesn’t seem to be much of a technical impediment to gold challenging $2,500.

James Stanley, senior market strategist at Forex.com, also believes that gold will continue to soar in the near term, possibly topping $2,500. The bulls have been on a roll over the past week, with signs that the US economy is slowing down and interest rate cuts back on the table.

Adam Button, head of currency strategy at Forexlive.com, noted that this rally in gold started in China, which is continuing to support higher gold prices. Recent data shows Turkey and much of the Middle East are also buying bullion. Besides that, this week’s meeting between Russian President Vladimir Putin and Chinese President Xi Jinping was also very favourable for gold prices. In fact, any news related to de-dollarisation is good news for gold.

This week, 11 out of 14 Wall Street analysts polled by Kitco News (79%) expect gold prices to continue climbing next week. Meanwhile, of the 144 retail investors who participated in the online poll, 83 (58%) believe gold will rise next week.

Sean Lusk, co-head of commercial hedging at Walsh Trading, said today that it’s not just gold, but silver and copper are hot right now, and even underperforming crude oil is up more than 10% this year. So everything looks good for the commodity markets heading into this summer.

Spot gold last traded at $2,414.99 an ounce by Friday’s close, up 1.60 per cent on the day and up 2.31 per cent cumulatively this week.

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