Gold failed to break through the level of $ 1,800 per ounce again, but according to analysts, one impending driver can take the precious metal out of its trading range.
Many experts in this field are warning investors about a possible sell-off of US stocks, and this might be what gold needs this autumn.
Goldman Sachs Group, Morgan Stanley, Citigroup Inc., and Bank of America Corp. are nervous that the US stock market is overvalued. Deutsche Bank AG also joined the opinion of other banks.
Senior commodities strategist Mike McGlone said that the volatility in the stock market may be a necessity for gold to get the precious metal moving.
Many analysts remain neutral in the short term, indicating that gold will remain within its nearest range.
Frank Cholly, Senior Market Strategist at RJO Futures, said that gold is experiencing difficulties when the US dollar index rises above 93. He added that as soon as the market realizes that inflation is not going anywhere, gold will have another chance to rise to the level of $ 2,000 per ounce.
According to the latest research, gold prices are stuck, and they will not move anywhere anytime soon.
Last week, 15 Wall Street analysts took part in the gold survey. 9 participants, representing 60%, voted for sideways trading. Meanwhile, the forecasts of sales and purchases scored only three votes each.
Retail investors remain optimistic. However, the participation in the poll fell to its lowest level in the previous week.
A total of 494 votes were cast in online polls. Of these, 274 respondents, or 55%, expected an increase in gold prices this week. Another 127, or 26%, agreed with the sales, while 93 voters, or 35%, voted neutrally.
Ole Hansen, Saxo Bank's head of commodity strategy, said that gold will continue to struggle as the US dollar remains relatively strong.