Gold prices have been on a decline as a result of several factors, including the sell-off momentum at the end of last week, uncertainty about interest rate cuts, and a lack of significant news. According to a survey conducted by Kitco, sentiment towards precious metals has deteriorated among Wall Street analysts. Out of 14 analysts, only three forecast higher gold prices, while eight predicted a decline and three others see gold trending sideways this week.
On the other hand, retail investors are more optimistic about the prospects of precious metals. A survey by Main Street found that 48% of retail investors predict an increase in gold prices, while 26% predict a decline and 21% think market prices will fluctuate horizontally. The week’s economic news is relatively scarce, with notable events such as the US’s preliminary first quarter GDP announcement, weekly unemployment benefit applications, and personal income and spending reports.
Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, anticipates a “quiet trading week” due to the holiday season in the US and lack of major events at the end of the month. Gold prices spiked above $2,400 per ounce before retreating to around $2,330 by the end of last week. James Stanley, a senior market strategist at Forex, believes that we are currently experiencing a pullback phase in gold markets. Analysts hold mixed views on the future of gold prices with some expecting a recovery from recent sell-offs while others point out downside risks due to several factors like stronger USD and higher interest rates. Despite all these uncertainties many central banks continue to invest in gold as UBS bank raised its forecast for gold price to reach $2600 an ounce by year-end . They recommend buying when price is below $2300 citing weakening US economic data , increased central bank demand for gold and ongoing political instability as driving factors
