- The $2,000 level remains a tough nut to crack for the gold market; however, retail investors are not expecting to see any significant selloff as bullish sentiment will continue to support prices near record highs next week.
Although the market continues to see solid safe-haven demand as recession fears grow, some analysts note that the U.S. dollar's waning influence as the world's reserve currency was a major driving force behind this week's late-rally push back to $2,000 an ounce. Grady added that central banks buying gold to diversify their foreign reserve holdings and support their currencies are providing extremely strong long-term support for gold prices and a solid floor in the market.
Meanwhile, 782 votes were cast in online polls. Of these, 507 respondents, or 65%, looked for gold to rise next week. Another 158, or 20%, said it would be lower, while 117 voters, or 15%, were neutral in the near term.Main Street Bullish Bearish Neutral Although sentiment among retail investors has dropped from last week's more than one-year high, it remains elevated.
Jim Wyckoff, noted that gold has solid technical momentum. He explained that along with gold's bullish weekly performance, the market is seeing an all-time-high closing price for the month and the quarter.