Industry experts are divided on their short-term forecast for gold prices, while retail sentiment remains positive. In a survey conducted by Kitco, 14 Wall Street analysts expressed uncertainty about the near-term outlook for precious metals, with 5 experts predicting a rise in gold prices, 4 predicting a decline, and 4 expecting prices to trade sideways. Meanwhile, 209 Main Street retail investors provided a more optimistic outlook, with 114 predicting an increase in price, 38 forecasting a decrease, and 57 expecting prices to remain stable.
Last week, gold prices experienced a decrease of 0.41%, attributed to a stronger USD and rising US government bond yields following positive data on US business activities and labor recovery. Despite this decline, Daniel Pavilonis from RJO Futures anticipates that global uncertainty could push gold prices higher in the coming months, while Marc Chandler from Bannockburn Global Forex is optimistic about geopolitical factors pushing prices up in the near future. In contrast, Adrian Day from Adrian Day Asset Management believes gold prices could fall next week as the market awaits clarity on various economic factors.
The outlook for this week’s gold prices will likely depend on economic data and news developments, with investors watching for indicators such as the PCE price index to gauge the possibility of interest rate cuts in the US. Overall, while experts remain uncertain about the short-term trajectory of gold prices, retail investors maintain a positive sentiment towards the precious metal.