There is a negative outlook on gold price expectations in the coming days, as the precious metal declines below the important support level at $4,100. These developments coincide 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.
Technical indicators indicate that the first resistance level starts at $4,032, followed by resistance at $4,075, then $4,100 if purchasing liquidity increases. On the other hand, the first support areas are located at $3,963, followed by $3,946, then $3,900 if the precious metal fails to rebound during several consecutive sessions.
Selling pressures dominate current trading as a result of gold’s failure to regain its upward path and its 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 aiming to take profits if the ounce approaches or exceeds the $4,500 level.
Buyers in the gold futures market are likely 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 contracts face the first level of resistance at $4,091, followed by the $4,100 level, while 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 an increase in levels of pessimism among Wall Street analysts following the sharp decline in prices over the past week, while individual investors expressed a greater degree of optimism despite the yellow metal’s recent weak performance.
17 analysts participated in the survey, and the results showed that the largest percentage of Wall Street participants moved to the pessimistic camp after prices fell sharply to below $4,000 per ounce. 4 analysts (24% of participants) expected 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.
In the same poll, which recorded 161 votes, individual investors showed much greater optimism than their professional counterparts. 67 individual investors (42%) expected prices to rise this week, while 41 participants (26%) expected the decline to continue, and the remaining 53 votes (33%) expected prices to stabilize within a horizontal range.
