Gold price expectations adopt a negative outlook in the coming days, as the precious metal declines below the important support level at $4,100, coinciding with the expansion of oil gains, which has reinforced concerns about inflationary pressures and the possibility of major central banks adhering to tight monetary policies for a longer period.
According to technical indicators, expectations indicate that the first resistance level may start at $4,032, followed by resistance at $4,075, then $4,100 in the event of increased purchasing liquidity. On the other hand, indicators show that the first support areas start at $3,963, followed by $3,946, then $3,900 if the precious metal fails to rebound during several consecutive sessions. Selling pressures are dominating current trading due to the loss of pivotal support levels. However, the current trading levels may represent an opportunity for investors with a long-term vision to build investment positions, while targeting profit-taking if the ounce approaches or exceeds the $4,500 level.
In the futures market, buyers are expected to seek to regain the initiative by pushing the ounce past the $4,259 level, while sellers will continue to press to test and break the $4,000 level. Gold futures may face the first level of resistance at $4,091, followed by the $4,100 level, and on the other hand, support begins at $3,989, followed by the $3,950 level.
In terms of market sentiment, the latest gold survey conducted by the “Kitco Metals” platform showed rising levels of pessimism among Wall Street analysts following the sharp decline in prices over the past week, while individual investors showed a greater degree of optimism despite the yellow metal’s recent weak performance. 17 analysts participated in the survey, with 4 analysts (24% of participants) expecting gold prices to rise this week, while 7 analysts (41%) expected the decline to continue, and 6 analysts (35%) indicated their inability to determine the direction of prices or expected them to move within a horizontal range.
On the other hand, the “Kitco Metals” poll recorded the participation of 161 votes from individual investors who expressed much greater optimism than their professional counterparts. 67 individual investors (42%) expect prices to rise this week, while 41 participants (26%) expect the decline to continue, and the remaining 53 votes (33%) expect prices to stabilize within a sideways range.
