(Kitco News) - The gold market could remain in neutral, with sentiment providing no clear direction for prices in the near term, according to the latest results of the Kitco News Weekly Gold Survey.
Retail investors remain solidly bullish on gold for next week; however, Wall Street analysts are caught in nearly a three-way tie. The mixed sentiment comes as the gold market has been consolidating for most of the week after the price was unable to break above resistance at $2,000 an ounce.
David Madden, market analyst at Equiti Capital, said that he remains bullish on gold but would not be buying gold at current prices.
"If gold can hold support above $1,920, its broad uptrend remains in place," he said. "I still hold that gold's more likely to push above $2,000 an ounce than fall below $1,900."
This week 18 Wall Street analysts participated in Kitco News' gold survey. Among the participants, seven analysts, or 39%, called for gold prices to rise next week. At the same time, six analysts, or 33%, were bearish on gold in the near term, and five analysts, or 28%, were neutral on prices.
Meanwhile, 647 votes were cast in online Main Street polls. Of these, 363 respondents, or 56%, looked for gold to rise next week. Another 170, or 26%, said lower, while 114 voters, or 18%, were neutral in the near term.
Wall Street
39%
33%VS
Main Street
56%26%Some analysts have said that gold prices could continue to consolidate further in the near term as the U.S. dollar and bond yields continue to rise after Federal Reserve Chair Jerome Powell confirmed that the U.S. central bank is on track to raise interest rates by 50 basis points next month and possibly at the following meeting.
Adrian Day, president of Adrian Asset Management, said that gold prices could see further selling pressure as investors react to the Federal Reserve's aggressive plans to tighten monetary policy.
However, Day added that any price drop should be seen as a buying opportunity.
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"The downside is shallow and will be short-lived in my estimation. Rather than heading for the exits, we want to be looking for good opportunities to buy," he said.
Colin Cieszynski, chief market strategist at SIA Wealth Management, said that he is bearish on gold in the near tear as the U.S. dollar and bond yields move higher. This week the U.S dollar pushed above 101, reaching a new two-year high. U.S. 10-year yields are close to hitting 3% for the first time since 2018.
Marc Chandler, managing director at Bannockburn Global Forex, said he sees gold prices pushing higher in the near term; however, gains could be limited.
"I think it can recover a bit, but I think a bounce to $1975 is the most that can be hoped for and then I look for a leg down toward $1920," he said.
