The latest weekly gold survey shows Wall Street analysts are still negative this week.
But despite such sentiment, some analysts are hopeful that economic uncertainty will continue to support the precious metal in the long term.
According to Phillip Streible, chief market strategist at Blue Line Futures, the price of gold is falling to a critical threshold for many investors. But the threat of recession has not disappeared. The Federal Reserve system, with its aggressive monetary policy, is on its way to destroying the economy, so gold's uptrend remains intact.
Marc Chandler, managing director at Bannockburn Global Forex, said gold prices would fall to $1,800 an ounce shortly, adding that the lower price could attract some investors looking for a safe-haven asset.
Last week, 17 Wall Street analysts took part in the Gold Survey. Among the participants, 13 analysts, or 76%, are bearish on gold for the current week. At the same time, only one analyst, or 6%, was optimistic, while three analysts, or 18%, believed that prices were trading sideways.
Meanwhile, 831 votes were cast in online polls. Of these, 374 respondents, or 45%, expect gold to rise this week. Another 327 voters, or 39%, said the price would go down, while 130 voters, or 16%, were neutral.
According to many analysts, the gold market is facing increasing headwinds as markets shift their Federal Reserve monetary policy expectations.
"The Fed Pivot was a pipe dream," said Frank McGhee, head precious metals dealer for Alliance Financial. "Persistent inflation will cause a higher terminal rate and higher for longer Fed Funds rate. Higher interest rates translate into lower Metals Prices."
The 10-year U.S. Treasury yield is currently trading above 3.8%, the highest level since the end of December. At the same time, the U.S. dollar index is trading above 103 points.
