According to Wall Street's latest weekly gold survey, the precious metal still has great long-term potential as the Federal Reserve fails to ease inflationary pressures.
Some analysts say Friday's rally in gold is a sign that investors are starting to doubt the US central bank's ability to curb inflation.
The rise came after the US Department of Labor reported that the consumer price index rose 8.6% YoY in May. Due to rising food and energy prices, consumer prices hit a 40-year high.
Last week, 15 Wall Street analysts took part in the gold survey.
Among the participants, there was a tie between bullish and neutral, with each side winning six votes, or 40%. At the same time, three analysts, or 20%, were bearish on gold in the short term.
And in online polls on Main Street, 598 votes were cast. Of these, 274 respondents, or 46%, expected a rise in gold prices this week. Another 167 voters, or 28%, said decline, while 157 voters, or 26%, were neutral.
Sentiment among retail investors plummeted. The week before last, 70% of online participants were optimistic about gold.
While analysts generally continue to see gold's long-term potential in this inflationary environment, the market is still facing rising interest rates.
Some economists believe the Federal Reserve's decision on Wednesday's monetary policy could create short-term pressure from gold sellers. The US central bank is going to raise interest rates by 50 basis points.
However, some analysts also noted that the Fed has already reached the peak of the hawkish stance, which could lead to a loss of momentum in the US dollar, and this will significantly weaken the resistance to gold.
Among gold-neutral analysts, the position remains akin to a tug-of-war between the Federal Reserve and inflation.