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BSL Gold bulls tire at $4,200 as prices build a floor at $4,000"(Kitco News) - Despite solid profit-taking ahead of the weekend, the gold market is poised to end the week in positive territory and establish new support at $4,000 an ounce.


Gold bulls tire at $4,200 as prices build a floor at $4,000"(Kitco News) - Despite solid profit-taking ahead of the weekend, the gold market is poised to end the week in positive territory and establish new support at $4,000 an ounce.
at $4,000 an ounce. Gold’s failed attempt to break above $4,200 per ounce this week has created some short-term bearish sentiment. According to the latest Kitco News Weekly Gold Survey, there is no significant consensus among Wall Street analysts regarding next week’s price action; however, many continue to view lower prices as a tactical buying opportunity. Meanwhile, Main Street investors remain solidly bullish on the precious metal. “There is uncertainty about the U.S. economy, tariffs, and the next interest rate move. Gold may need to retest the recent lows ($3930 area) before a convincing recovery. Any pullback is likely to be brief and shallow as the main drivers of gold remain in place,” said Adrian Day, President of Adrian Day Asset Management.
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Gold bulls tire at $4,200 as prices build a floor at $4,000"(Kitco News) - Despite solid profit-taking ahead of the weekend, the gold market is poised to end the week in positive territory and establish new support at $4,000 an ounce.
Gold’s failed attempt to break above $4,200 per ounce this week has created some short-term bearish sentiment. According to the latest Kitco News Weekly Gold Survey, there is no significant consensus among Wall Street analysts regarding next week’s price action; however, many continue to view lower prices as a tactical buying opportunity. Meanwhile, Main Street investors remain solidly bullish on the precious metal.
“There is uncertainty about the U.S. economy, tariffs, and the next interest rate move. Gold may need to retest the recent lows ($3930 area) before a convincing recovery. Any pullback is likely to be brief and shallow as the main drivers of gold remain in place,” said Adrian Day, President of Adrian Day Asset Management.
Wall Street’s cautious sentiment comes after gold was able to hold key support at $4,000 an ounce on Friday, generating solid buying momentum through the first half of the week. On Thursday, spot gold reached a high of $4,245 an ounce before being hit with significant selling pressure.
Spot gold last traded at $4,080 an ounce, up 2% on the week; however, prices are down more than 3% from Thursday’s intraday high.
“Bulls have quickly run out of gas and the near-term technical charts have deteriorated a bit,” said Jim Wyckoff, Senior Market Analyst at Kitco.com. He added that he is looking for lower prices next week.
According to some analysts, gold sold off as shifting interest rate expectations triggered a broader market pullback, with Bitcoin and equities also losing ground. Although the 43-day U.S. government shutdown has ended, some economists worry that economic data collection has been severely impacted. A lack of quality data is forcing the Federal Reserve to take a neutral stance on monetary policy, potentially leaving interest rates unchanged next month.
According to the CME FedWatch Tool, markets see less than a 50% chance of a rate cut in December; last month, markets saw more than a 90% chance of easing.
“The weakness of the US dollar and rumours of the Fed resuming asset purchases have been catalysts for gold's rise since the beginning of the week, but Thursday and Friday clearly showed that this is no longer a one-way street,” said Alex Kuptsikevich, Senior Market Analyst at FxPros.
Kuptsikevich is bearish on gold next week and also sees growing potential for investors to sell into rallies.
“Since the end of last month, gold has been selling off heavily after its rise, which appears to be an attempt by bears to demonstrate that they have broken the bulls' back. Gold, like other risky assets, was undermined at the end of the week by a sharp decline in the chances of a Fed rate cut in December. If FOMC members really nudge the market in this direction, the dollar is doomed to rise and gold to fall,” he said. “However, we still see higher risks that the data coming out of the US will show a sharp deterioration in the economic landscape. In this case, we should expect the dollar to rise and a flight from risk, but in such cases, gold soars in the early stages only to fall off a cliff later on.”
This week, 17 Wall Street analysts participated in the Kitco News Gold Survey. Among the participants, eight analysts, or 47%, were bearish on gold in the near term. At the same time, six analysts, or 35%, were neutral for next week, while three analysts, or 18%, saw prices moving higher.
Meanwhile, 230 votes were cast in the online social media poll. Of these, 151 respondents, or 65.7%, expected gold to rise next week. Another 38 respondents, or 16.5%, anticipated lower prices, while 41 voters, or 17.8%, were neutral in the near term."