(Kitco News) – Gold held onto its recent gains this week, supported by the ongoing conflict in the Middle East, while high bond yields continue to deliver headwinds for the precious metal. The yellow metal also went on another run heading into the weekend, with spot gold once again trading above $2,000 per ounce as traders look to get into long positions in case the geopolitical situation deteriorates while markets are closed.
The latest Kitco News Weekly Gold Survey sees retail investors still bullish on the precious metal for the week ending Nov. 3 despite the recent price runup, while a majority of market analysts are also bullish but with a significant minority expecting either pullback or consolidation next week.
“I’m going to go neutral for the survey this week,” said Colin Cieszynski, Chief Market Strategist at SIA Wealth Management. “The reason is because I think that gold could actually have a big move; I’m just not sure which direction.”
Cieszynski said he expects another hawkish hold at the Fed meeting next week. “I don’t think they’re in a position to start saying they’re done raising interest rates,” he said. “I think they’ll hold and leave the door open to another rate hike in December because they forecast one more. I think today’s inflation number was benign enough that they don’t need to go raising rates again, but at the same time, it wasn’t dropping off fast enough for them to say we’re done.”