Gold prices hold above $1,800 per ONS. However, analysts state that gold may rise to $ 1,920 per ONS, or it may experience another drop to $ 1,600 next week. Let’s take a closer look at the new gold price claims…
Daniel Pavilonis: Gold prices could go up to $1,900 or drop to $1,600!
Daniel Pavilonis, RJO Futures senior commodities committee member, made valuable statements in his new statement. Daniel Pavilonis said that gold has been resilient this week and is approaching $1,830 per ONS despite a stronger US dollar, but the dollar’s direction next week may be critical for gold.
According to Daniel Pavilonis, a pullback of the dollar could stimulate the gold market and help return the rally to $1,920, while additional profits in the US dollar could trigger a sell-off to $1,600. Daniel Pavilonis adds the following to his explanations on the matter:
DXY stays below the long-term trendline in gold. The US dollar will either break the top or bounce back. A drop in the US dollar could be favorable for gold and the point where we need to reach $1,920. A sale for $1,600 may also come into play.
Daniel Pavilonis: We have a fair shot to return $1,920 in gold
On top of that, gold prices remain very sensitive to the bond market, which may start to see some movement due to the inflation narrative. Daniel Pavilonis is trending upwards, but expects gold to rise in truth by the end of July. Daniel Pavilonis adds the following to his explanations on the subject:
Gold needs to start closing above $1,840 to highlight the upside. If US macro information remains strong, interest rates will start to move, which will have an opposite correlation with the precious metals markets. If that happens, we have a fair shot to return to $1,920 if we can close gold above $1,840 under pressure.
Everett Millman: The 200-day moving average for gold prices is around $1,830
On Friday, gold prices took a measure of profit on the day. August Comex gold futures were last trading at $1,812, down 0.90% during the day. Everett Millman, precious metals specialist at Gainesville Coins, said gold is facing strong resistance at $1,830 per ONS, after gold topped the $1,800 per ONS level this week. Everett Millman adds the following to his comments on the bet:
The 200-day moving average is around $1,830. It looks like a strong resistance for gold at the moment. It also acts as a short-term peak in time. Drivers pulling Gold in different directions make things a little more complicated. There are quite a few stable drivers on both sides. Our inflation is rising, but we also have central banks around the world that are potentially tightening a bit. Gold prices are settled in these two dynamics. In addition to following the dollar’s direction next week, oil remains a valuable foreign market driver. Higher oil prices mean an increase in inflation, which is positive for gold prices.
Mike McGlone: Gold likely to approach $2,000 resistance
Since the beginning of the year, gold prices have fallen by around 4%. But all price consolidation and supportive macroeconomic environment could mean gold is poised to continue its rally, said Mike McGlone, senior commodity strategist at Bloomberg Intelligence.
Mike McGlone noted on Friday that it is the rising US debt-to-GDP ratio, and always quantitative easing, that will help gold rise to $2,000 per ONS. Mike McGlone adds the following to his statements on the matter:
Having lost nearly 4% in value by July 15 in 2021 and retreating almost 20% from record levels, the metal looks ripe to continue its rally. A potential catalyst for gold to break past the $2,000 per ONS resistance will be the prolonged decline in stock market and US Treasury bond yields from the March peak. We see that there is a higher probability of approaching the $2,000 resistance than for Gold to remain below the $1,700 reinforcement in 2H. Like bonds, the metal can provide a defense against an increase in stock market volatility.