- U.S. job growth missed expectations in July, heightening GDP fears and driving analysts to predict a potential gold rally.
- Gold saw a 3.78% gain after respecting the 50-day moving average, indicating a possible upward trend amid economic concerns.
- Majority of analysts and retail investors expect rising gold prices next week due to economic slowdown fears.
Analysts are expecting a race in gold prices as fear of the U.S. weak economy continue to rise. Recent economic data has reported that job growth in July fell well below to an unexpected level, with only 114,000 new jobs added.
Analysts Predict Gold Rally as U.S. Economic Fears Rise
This recorded information has surged the unemployment rate up to 4.3%, its highest level since October 2021, further fuelling concerns about a possible economic slowdown.
Gold, which is traditionally viewed as a safe investment during periods of unstable economics experienced a huge sell off. However, market experts believe that this decline is only temporary and that gold might challenge its all-time high in the near future.
By the close of trading on Friday, gold was priced at $2,442, reading a 3.78% increase from its recent low on July 25. The metal’s price shifted to $2,353, a level that favoured the 50-day moving average
Analyst Market Reaction Reaction
Recently, Robert Kiyosaki, a investor and financial education advocate expressed his concern to his 2,600,000 followers on his X space talking about the ongoing Bitcoin market crash saying its time to buy more silver, Bitcoin and gold.
The Kitco News Weekly Gold Survey indicates that sentiment among both retail investors and analysts is positive. Key figures in the market like, Bob Haberkorn and James Stanley have expressed positivity about gold’s future with James Stanley saying a shift is expected. While the gold is likely to see positive gains, Adam Button has urged caution in the short term due to potential market changes.
The results show that 79% of Wall Street analysts and 73% of Main Street investors expect that gold prices will rise in the near days. Several factors are behind this current trend, including the growing fears of a U.S. reduced GDP, possible weakening economy, and current political tensions.
