Sentiments in the gold market are gradually returning to bullish. However, there is still insufficient momentum to push prices above the critical resistance level.
The weekly gold survey shows that bullish sentiment among Wall Street analysts and Main Street retail investors is evenly balanced. Optimism began to grow after two weeks of bearish sentiment.
The improved outlook is also related to a slight increase in gold prices on Friday amid the U.S. jobs report.
However, the lack of clarity from the Federal Reserve regarding the future course of its monetary policy keeps many investors on the sidelines. Gold investors are in wait-and-see mode. If the Fed announces the end of the rate hike, gold could return to $2,000.
At the end of last week, 19 Wall Street analysts participated in the gold survey. Among them, ten analysts, or 53%, were optimistic about prices for the current week. Five analysts, or 26%, had a negative outlook. And four analysts, or 21%, believe that prices will trade in a sideways range.
In online polls, 483 votes were cast. Of these, 182 respondents, or 38%, expect a rise in gold prices, 181, or 37%, forecast bearish sentiment, and 117 voters, or 24%, were neutral.
Retail investors believe that gold prices will reach $1,940 per ounce by the end of the week.
Marc Chandler, managing director of Bannockburn Global Forex, said prices could test $1,955 per ounce this week.