Gold outlook for next week

This week, gold broke above $2,000 a troy ounce.

Despite a bullish trend in the market, more analysts believe that prices will consolidate before surpassing their historical highs. However, a Wall Street review shows that retail investors remain optimistic about gold. This week, 22 Wall Street analysts participated in a survey. Ten analysts (50%) gave a bullish short-term outlook. Meanwhile, bearish and neutral expectations each received five votes (25%). In online surveys, 647 votes were cast with 430 respondents (66%) expecting price increases next week, 121 respondents (19%) predicting a drop, and 96 voters (15%) staying neutral.

Sentiment has barely changed since last week as gold prices look to start the Easter long weekend higher from last Friday.

This week, the metal has added 7%. While maintaining a bullish outlook, the majority of analysts said gold needs a rest.

According to OANDA Senior Market Analyst Craig Erlam, gold will hold prices back from falling bond yields and the weakening US dollar.

Rising concerns about a recession and growing expectations that the Federal Reserve has finished raising interest rates will continue to support gold. At the same time, if stronger-than-expected employment data or high inflation indicators come next week, this could undermine gold's rally. However, the data must be much higher than expected.

Forexlive.com Chief Currency Strategist Adam Button disagrees with Craig Erlam. He is neutral on gold but is willing to wait.

Adrian Day, President of Adrian Day Asset Management, is bearish but believes any correction will be short and shallow.

What unites all the analysts is that they all unanimously believe that, as volatility continues to dominate financial markets, demand for gold remains buoyant.