Volatility to dominate gold market as ‘central banks running out of options,’ bullish sentiment intact

During the short trading week, gold was able to breach a key resistance level of $1,975 an ounce, with June Comex gold futures touching a high of $1,985 on Wednesday.

Most of the 13 participating analysts on the Wall Street side were bullish when asked about their gold price expectations for next week, with 46% projecting higher levels.

Out of the 1,254 participating retail investors, 72% expect higher prices, 16% estimate a move lower, and 12% are neutral, Kitco’s survey showed.

“There is a growing belief in a long-term commodity rally along with the weakening of all major currencies.

“I am neutral on gold for the coming week.

The bearish camp leaned towards a pullback next week as investors look to take profits after solid gains.

“We may see a pullback next week, but only shallow and ‘transitory’ before gold moves up again in response to higher inflation, central banks running out of options, and a deteriorating situation in Ukraine,” he told Kitco News.

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