Global gold market routing this week.
After returning to the $4,000 channel, the global gold price is on the verge of a fateful week.
While strong U.S. employment statistics and the possibility of a Federal Reserve rate hike have made the short-term outlook for this precious metal uncertain, analysts believe that the release of U.S. inflation data and geopolitical developments in the Middle East, especially the prospect of negotiations between Iran and the U.S., could determine the future gold price path.
▫ Philip Striebel, chief market strategist at Blueline Futures, said in an interview with Kitco News: The release of higher-than-expected inflation statistics next week will further strengthen expectations for an interest rate hike by the Federal Reserve in December. Such conditions could bring the price of gold back below the $4,000 per ounce level.
▫ However, Stribel believes: this possible decline may be the last wave of short-term investors exiting the gold market before the start of a new uptrend.
▫ He explained: the results of the American mid-term elections weakened the chances of economic activity in the field of artificial intelligence, because it will probably affect the process of building data centers. This weakness could eventually force the Federal Reserve to retreat from its contractionary approach, thus providing more room for gold prices to rise.
▫ Stribel said: "Investors should start looking for opportunities to buy gold this week when the price drops."
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