Gold price today March 13: Optimism about gold price plummeted

 Although there are still many supporting factors for gold price next week, the optimism of gold price experts has decreased significantly compared to last week.

The world gold market had a prosperous week when the gold price reached an all-time high at one point. Experts say that gold's recent push above $2,000 an ounce is just the beginning of a stronger long-term move. Regarding the short-term forecast, although analysts are still leaning to the upside of gold prices, optimism has decreased significantly compared to last week.

The latest Kitco News survey with the participation of gold market analysts on Wall Street shows that optimism is still marginally better than worrisome and neutral sentiment. However, it has decreased significantly compared to the previous week. Specifically, 44% of all Wall Street analysts who participated in the survey forecast gold prices to increase next week. This number for the last week is absolute.

David Madden, market analyst at Equiti Capital, said that while standing in the neutral group, he still sees bullish signs for gold ahead of the US Federal Reserve meeting. Markets continue to expect the Fed to raise interest rates six times this year, he said. However, the Russia-Ukraine conflict is creating a lot of economic instability as high commodity prices increase the risk of inflation. He also added that any suggestion that the US central bank will be less aggressive in its monetary policy is good for gold.

Madden thinks that the Fed will raise interest rates this year is not in dispute. However, if there are only 4 rate hikes instead of 6 as calculated by the market, the agency is unlikely to accelerate the rate hike due to the ongoing conflict in Ukraine. Overall, rising inflation, geopolitical tensions, and historically volatile financial markets are still factors in favor of the gold market.

Sharing the same view as Madden is Colin Cieszynski, chief market strategist at SIA Wealth Management. He also forecast that the US central bank's monetary policy meeting will create some volatility for the dollar. This will benefit gold.

He added, along with high inflation, the tension in Ukraine shows no signs of cooling down, which will push gold prices up next week.

On the other hand, some experts believe that gold price will enter a consolidation phase next week with the prediction that gold price will fall to the range of 1,929.7 USD/ounce - 1,964.9 USD/ounce.

World gold price on the morning of March 13 listed at Kitco is 1,991.1 USD/ounce, equivalent to about 55.2 million VND/tael.

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