The results of the weekly gold survey indicate that both Wall Street analysts and retail investors are looking at gold with cautious optimism this week.
Last week, the price of the yellow metal managed to climb above $2,050 per ounce and briefly reached $2,090. The best performance of the precious metal since late November led to a new record closing price.
Despite breathing new life into the precious metals market, some analysts say that the price movement remains sensitive, as profit-taking and volatility could bring prices back into a clearly defined channel. According to Adam Button, chief currency strategist at Forexlive.com, Friday's rally demonstrates the great potential of gold, but, in his opinion, the rally was not supported by strong fundamental indicators.
James Stanley, senior market strategist at Forex.com, stated that he is not chasing the market, even though he expects price increases in the near term. The NFP report on Friday will be significant for the macroeconomy. The precious metal could test the $2,100 per ounce level.
Marc Chandler, Managing Director at Bannockburn Global Forex, said $2,088 could become a major resistance level for gold this week. In his opinion, this record high set in December on this surge will now be confirmed by the need for a decrease in the stability of the dollar.
According to Phillip Strieble, chief market strategist at Blue Line Futures, while the gold rally is impressive, he would like the yellow metal to maintain a higher position to confirm that it is not just another bull trap.
Sean Lusk, co-director of commercial hedging at Walsh Trading, said that despite the excellent growth potential of the precious metal, he, like Stanley, is not rushing to chase the market. He added that investors may consider options to get a share of gold and take advantage of market dynamics. Lusk believes a modest rally could push the market up to $2,175.
The recent gold survey was participated by 14 analysts, and none of them expressed bearish sentiments. According to a survey, 11 analysts, or 79%, are optimistic about gold this week. At the same time, three analysts, or 21%, took a neutral stance.
Meanwhile, investor sentiment on Main Street continues to improve steadily. In an online poll with 175 votes, slightly better than last week, 77 retail investors, constituting 44%, expect gold prices to rise. Another 43 respondents, or 25%, predict a price decrease, while 55 respondents, or 31%, are neutral about the short-term prospects of the precious metal.
