According to analysts, with all eyes on the U.S.
One of the main events the market is watching very closely is Biden’s Fed Chair pick, which could be announced as soon as this weekend.
But we got the trading scandal among Fed members and progressives got upset with how Powell handled the regulatory side,” OANDA senior market analyst Edward Moya told Kitco News.
If Biden were to choose Brainard, gold would climb higher as the initial reaction would see those Fed rate hike expectations pushed back even further, Moya explained.
“As the well-used term goes, markets hate uncertainty – and a Brainard appointment, at a time of impending monetary policy change, represents a small rise in uncertainty that many in the market could do without – well, except for those who like volatility which is most short-term traders,” Weston said.
We are not going to see any new trends emerge next week unless we get the Brainard surprise.
“The price action is pretty much warranted to be choppy whether we wait to see whether or not the Fed will have to bow to inflationary pressures.
Any pullback in gold price is likely to be viewed as a buying opportunity.
“The yellow metal vulnerable to a deeper consolidation if prices fail to hold above the $1,840/oz region.
Next week, gold is likely to remain between $1,840 and $1,890 an ounce, Moya said.
If we do see another decline in bitcoin, that in itself could be great news for gold,” Moya noted.
As 2021 wraps up, traders will shift their attention away from rate hikes and focus more on growth.
Over the next month, gold is bound to make a move to $1,900 an ounce as investors come back to bullion for inflation hedges amid a flight to safety with some additional concerns coming from Europe’s COVID flare-up and the dovish European Central Bank.
The big day to watch next week is Wednesday, with the FOMC meeting minutes, the U.S.
The highlight may well be the minutes to the November 3rd FOMC meeting when the Federal Reserve announced the start of QE tapering,” said ING chief international economist James Knightley.