Since September 20th, when the Federal Reserve left interest rates unchanged, and following the U.S. employment report that led to a drop in the spot price to a new 7-month low of $1,810.46, gold closed in the positive territory for the first time in two weeks on Friday.
According to the latest weekly gold survey, market analysts and retail investors have divergent opinions on the prospects of the precious metal for the current week.
Darin Newsom, Senior Market Analyst at Barchart, predicts an increase in gold prices, believing that the yellow metal will reach $1,860 by the end of the week. However, the long-term downward trend persists.
Michael Moor, founder of Moor Analytics, holds a bearish outlook.
James Stanley, senior market strategist at Forex.com, believes that gold will remain within its recent range for the current week.
Thirteen Wall Street analysts participated in the recent gold survey. Five experts, or 38%, expect prices to rise, while the same number of experts forecasts a decline. Only three analysts, or 23%, remain neutral.
In an online poll, 528 votes were cast. Of these, 227 retail investors, or 43%, anticipate price increases. Another 222 respondents, or 42%, expect a decline, while 79 respondents, or 15%, have a neutral stance.
The latest poll shows that retail investors expected prices to be around $1,842 per ounce, which is $30 lower than last week's forecast. However, due to the tense geopolitical situation in Israel, prices have already reached this target.
According to Marc Chandler, Managing Director at Bannockburn Global Forex, the key drivers for gold remain the U.S. dollar and interest rates, not central bank purchases.
Colin Cieszynski, chief market strategist at SIA Wealth Management, holds an optimistic view on precious metal prices. In his opinion, the U.S. dollar and Treasury yields should take a pause, and gold should strengthen above the $1,820 per ounce mark.
Adrian Day, President of Adrian Day Asset Management, believes that markets may misinterpret employment data, and the price of the precious metal will continue to decline during the week.
Mark Leibovit, publisher of the VR Metals/Resource Letter, believes that gold is moving away from recent lows and has some potential for growth.
The current week is expected to be relatively calm, except for the geopolitics in the Middle East. U.S. inflation data will be crucial for gold prices. The U.S. Producer Price Index for September will be published on Wednesday, followed by the Consumer Price Index on Thursday. These indicators together should provide the markets with a better understanding of the Federal Reserve's next move.