Due to the tense geopolitical situation in Ukraine, which has been going on for two weeks, the humanitarian crisis continues to grow. More than 2 million Ukrainian refugees poured into Europe. Inflation is growing. Unsurprisingly, gold's recent rise above $2,000 is just the beginning of a larger long-term move.
The latest survey results for gold do not show a clear majority for short-term forecasts among market analysts. At the same time, bullish sentiment among retail investors also eased from elevated levels the week before last.
Last week, 18 Wall Street analysts took part in the gold survey. Among the participants, eight analysts, or 44%, voted for the increase in gold prices this week. At the same time, three analysts, or 17%, are closer to short positions, and seven analysts, or 39%, were neutral on prices.
There were 1,013 votes cast in Main Street online polls. Of these, 634 respondents, or 63%, expected a rise in prices this week. Another 223 voters, or 22%, said lower, while 156 voters, or 15%, were neutral.
According to Equiti Capital market analyst David Madden, despite his neutral stance on gold prices this week, he sees growing growth risks ahead of the Federal Reserve's monetary policy decision, which will take place on Wednesday.
Everyone expects that the Fed will raise interest rates six times this year, however, the geopolitical situation in Ukraine creates a lot of economic uncertainty, as rising commodity prices increase inflationary risks. And any hint that the U.S. Central Bank will be less aggressive in its monetary policy could be good for gold.
Most likely, the ongoing conflict in Eastern Europe will continue to support higher gold prices if there is no positive news change in the coming days.
