The mood in the gold market has become very optimistic.
18 Wall Street analysts took part in the gold survey during the previous week. Among the participants, 15 analysts, or 83%, voted for an increase in gold prices during the current week. Meanwhile, two analysts, or 11%, said that gold prices will drop in the near future and only one analyst, or 6%, held a neutral position on prices.
1,018 votes were cast in online polls on Main Street. Of these, 722 respondents, or 71%, expected gold prices to rise during this week. Another 165 voters, or 16%, replied that the price would fall. And 131 voters, or 13%, reacted neutrally.
Not only has there been renewed interest in gold as inflation continues to rise, but some analysts also say that growing fears that the Fed is losing control will continue to support prices.
The opinion of Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, coincided with Wall Street analysts. He also expects gold prices to rise, adding that the rise in silver and platinum prices should also strengthen the new upward trend of gold.
At the same time, Forexlive.com's Chief Currency Strategist Adam Button said he expects gold prices to rise as the mood in the futures market improves after the breakout of $1,835 per ounce.
However, not all analysts are optimistic. According to Ole Hansen, Saxo Bank's head of Commodity Market Strategies, gold may decline to the level of $1,830 per ounce before investors make another major surge to $1,900.
Similarly, the managing director of Bannockburn Global Forex, Mark Chandler, said that despite the fact that gold has made an impressive step towards growth, he is not sure that the precious metal will be able to withstand the increase in bond yields and the strengthening of the US dollar. According to him, a stronger dollar and higher yields are the traditional prohibitions of gold bulls.
