Despite Friday's decline in precious metal prices, which followed the release of US labor market news, Wall Street and Main Street investors remain bullish on gold, as the latest employment report indicated a 339,000 increase in nonfarm payroll jobs for May, well above the estimate of 180,000. Unemployment also rose, leading to a significant rise in Treasury bond yields and dollar.
The data reduced the likelihood of a pause in the Fed's interest rate hike at the June meeting. However, according to the CME FedWatch tool, the probability of such a scenario still stands at 73.6%.
Last week, Wall Street analysts participated in a gold review, where 53% of which claimed bullish. 26% predicted a decline in prices, while 21% believed that prices would trade sideways. In online surveys, 60% expected an increase in gold prices, while 24% anticipated a decline. 15% expressed a neutral stance.
Although Wall Street analysts and retail investors showed optimism to the gold market, they do not expect prices to reach record highs. A survey on Main Street said prices could reach $1997 per ounce this week.
For many analysts, the main driver of gold's growth lies with the Federal Reserve's stance on monetary policy. However, economists believe that a pause does not signify the end of the tightening cycle.
