Ahead of the weekend, gold’s drop below $2,000 per ounce undermined short-term bullish sentiment. However, due to such uncertainty regarding financial markets, few analysts and retail investors expect significant sell-offs of the yellow metal in the near future. The threat of inflation in the economy as a whole, and better-than-expected U.S. economic data have caused gold prices to collapse, approaching a two-week low. But according to most Wall Street analysts, even though prices may continue to decline in the short term, the overall picture hasn’t changed.
Retail investors’ bullish sentiments are also changing. Nevertheless, they still believe prices will continue to trade around $2,000 per ounce this week. According to Sean Lusk, co-director of commercial hedging at Walsh Trading, the precious metal may drop to $1,930 per ounce in the near future.
Lusk added that investors should use this decline as a strategic opportunity to protect themselves from the ongoing threat of inflation, potential recession, and a deeper banking crisis. Last week, 23 Wall Street analysts participated in the gold survey. Among them, six analysts, or 26%, were optimistic about the current week. Eight analysts, or 35%, voted for lower prices, and nine analysts, or 49%, saw prices in a sideways range.
In online polls, 618 votes were cast. Of those, 329 respondents, or 53%, were expecting gold prices to rise. Another 166 voters, or 27%, said prices would decline, and 123 voters, or 20%, expressed neutral opinions.
Although retail investors continue to look optimistically, their sentiment has declined compared to the previous week. Last week, 68% of retail investors were optimistic. Most of those on Main Street believe that gold will recover prices of $2,000, with an average target price of $2,015 per ounce.
Marc Chandler, managing director at Bannockburn Global Forex, said only 18% of online respondents believe they will fall below $1,950 in the near future.
For many analysts, the decline in gold prices is not surprising, as the market is anticipating the Federal Reserve’s tightening monetary policy. According to the CME FedWatch tool, a 25 basis point rate hike in May is firmly accounted for.
Adrian Day, president of Adrian Day Asset Management, is bearish in the short term due to changing interest rate expectations. Some analysts noted that changing interest rate expectations affect bond yields and the U.S. dollar, creating two major obstacles for gold.
The material has been provided by InstaForex Company – www.instaforex.com
Ahead of the weekend, gold’s drop below $2,000 per ounce undermined short-term bullish sentiment. However, due to such uncertainty regarding financial markets, few analysts and retail investors expect significant sell-offs of the yellow metal in the near future. The threat of inflation in the economy as a whole, and better-than-expected U.S. economic data have caused gold prices to collapse, approaching a two-week low. But according to most Wall Street analysts, even though prices may continue to decline in the short term, the overall picture hasn’t changed.
Retail investors’ bullish sentiments are also changing. Nevertheless, they still believe prices will continue to trade around $2,000 per ounce this week. According to Sean Lusk, co-director of commercial hedging at Walsh Trading, the precious metal may drop to $1,930 per ounce in the near future.
Lusk added that investors should use this decline as a strategic opportunity to protect themselves from the ongoing threat of inflation, potential recession, and a deeper banking crisis. Last week, 23 Wall Street analysts participated in the gold survey. Among them, six analysts, or 26%, were optimistic about the current week. Eight analysts, or 35%, voted for lower prices, and nine analysts, or 49%, saw prices in a sideways range.
In online polls, 618 votes were cast. Of those, 329 respondents, or 53%, were expecting gold prices to rise. Another 166 voters, or 27%, said prices would decline, and 123 voters, or 20%, expressed neutral opinions.
Although retail investors continue to look optimistically, their sentiment has declined compared to the previous week. Last week, 68% of retail investors were optimistic. Most of those on Main Street believe that gold will recover prices of $2,000, with an average target price of $2,015 per ounce.
Marc Chandler, managing director at Bannockburn Global Forex, said only 18% of online respondents believe they will fall below $1,950 in the near future.
For many analysts, the decline in gold prices is not surprising, as the market is anticipating the Federal Reserve’s tightening monetary policy. According to the CME FedWatch tool, a 25 basis point rate hike in May is firmly accounted for.
Adrian Day, president of Adrian Day Asset Management, is bearish in the short term due to changing interest rate expectations. Some analysts noted that changing interest rate expectations affect bond yields and the U.S. dollar, creating two major obstacles for gold.
The material has been provided by InstaForex Company – www.instaforex.com
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