Weekly evaluation of Kitco site about gold according to market experts Sunday, June 13
According to the weekly assessment of Kitco News, the global gold ounce market trend has been neutralized again. From a professional point of view, the global ounce fundamentally supports the uptrend, but nevertheless the technical status of the global gold ounce tends to decline. In fact, from a fundamental point of view, inflationary pressures are intensifying day by day, which is in favor of gold. But technically, the global ounce price could not stay above $ 1,900. Even the US real rate of return has fallen and the dollar has weakened.
This week, 15 Wall Street activists took part in the weekly evaluation of the Kitco site. The differences among professional activists are so great that the supporters of the ascending, descending and neutral trend are the same! Meanwhile, 1,056 Main Street investors took part in the online survey. 66% are in favor of an uptrend, 17% are in favor of a downtrend and another 17% are in favor of a trend-free or neutral market.
Last week, both groups were optimistic about the ounce of global gold. But that optimism has waned as global gold prices fall below $ 1,900. According to analysts, entering the global gold ounce trade is due to the rapid growth of risky inflation. US inflation has reached 5 percent, the highest level of inflation since 2008. The rapid rise in inflation combined with low interest rates means that the US real rate of return will fall further. This is good news for the gold market. According to analysts, as long as the price of an ounce of global gold is above the support of $ 1855, the long-term uptrend will continue.
Analysis of professional market participants:
Ole Hansen is a commodity market strategist at Saxo Bank
Hansen believes that the technical trend of ounces of world gold is declining, but there is no reason to sell ounces of world gold! In his view, the power of buyers is weakening and a new stimulus is needed to revive the uptrend. "I do not think the Federal Reserve's view on inflation is wrong," he said. But the market has come to believe that the rapid growth of inflation is temporary. "I think there are reasons to sell gold in the short term, but it is fundamentally risky."
Darin Newsom Independent Market Analyst
Newsam believes that the medium-term trend of global gold ounces is declining. He expects a deep downturn in the market. The global gold ounce is targeting support at $ 1871.80. I think gold will cross this support and fall to the next support at $ 1827. In my opinion, buyers will enter the market from this range. "I do not expect heavy sales in the market, but the fall of the market to lower support will bring new buyers into the market."
Phillip Streible Senior Market Strategy at Blue Line Futures
The activist expects the global ounce price to fall in the medium term. However, the downward movement of gold has not yet been enough to justify entering into a buy trade. He went on to say that before buying an ounce of global gold, it is better for the market to fall to the $ 1850 range.
Marc Chandler is the CEO of Bannockburn Global Forex
According to Chandler, the ounce trend of global gold is declining, as $ 1900 support has been lost and turned into resistance. He also predicts that US Treasury bond yields will rise by the time the US Federal Reserve sets interest rates. The US Federal Reserve will set a meeting next week. "There is a possibility that the world ounce price of gold will return to the $ 1855 range."