Wall Street analysts said 38.5% of their surveyed participants expect a rise in gold prices this week, while another 38.5% voted for a decline. The remaining 23%, meanwhile, remained neutral.
On the Main Street side, people are more optimistic as 68% of the surveyed participants voted for a price increase, while 19% said there will be a decline. The remaining 13% were neutral.
Last week, the yellow metal declined amid a stronger-than-expected retail sales data, which points to a potential aggressive action by the Federal Reserve in terms of narrowing bond purchases or raising rates. Marc Chandler, managing director at Bannockburn Global, even said the rates may hike as early as the second half of next year.
But this week, the price range that investors should be looking at is between $ 1,725 and $ 1,825.
Darin Newsom, president of Darin Newsom Analysis, said that gold has a high chance of rising this week because despite the recent sell-off, the December contract is still in an upward trend. In addition, the US dollar is in a downward trend.
But analysts' bearish voice warn that US Treasury yields are still rising, so gold will have a hard time rallying until the trend reverses.
