- Bullish sentiment continues to creep back into the gold market, but while prices have room to go higher next week, neither Wall Street analysts nor Main Street retail investors expect to see a major breakout.
He added that many investors continue to sit on the sidelines, waiting for the Federal Reserve to signal that it is ready to stop raising interest rates. He noted that there still isn't enough information to give a definitive answer on interest rates. "Gold still looks attractive at these levels because, in a neutral rate environment, there are other factors that can drive gold prices. Once the Fed is done raising interest rates, investors will turn to gold as a safe-haven or geopolitical hedge.
This week, 20 Wall Street analysts participated in the Kitco News Gold Survey. There was a tie among the participants, with nine analysts, or 45%, seeing higher and sideways prices next week, respectively. At the same time, two analysts, or 10%, were bearish on gold in the near term.