Wall Street is cautious about gold prices this week

Many analysts are inclined to the scenario that gold prices will continue to move sideways and adjust this week, after a period of strong increases.

Last week, after the two-day policy meeting of the US Federal Reserve (Fed), the gold market witnessed strong buying force, bringing the precious metal to 2,204 USD per ounce on March 21 - a high level. best of all time.

However, overnight, the USD rebounded, causing the precious metal to fall, ending the week at nearly 2,165 USD per ounce. April gold futures price is anchored at 2,166 USD per ounce, down nearly 40 USD compared to March 21.

Kitco News 's forecast for this week shows that Wall Street experts are divided and cautious about the direction of gold, while retail traders support a bullish trend.

Of the 15 Wall Street analysts participating in the survey, 6 experts, equivalent to 40%, are inclined to the scenario that gold prices will increase. Of the remaining 9 analysts, 4 predict the price will decrease, 5 predict a move sideways.

Of 170 online votes from individual investors, 117 people, equivalent to 69%, expected the price to increase. Another 25 people (ie 15%) predicted that precious metals would decline. The remaining 16% of opinions stated a neutral opinion.

Everett Millman, director of market analysis at Gainesville Coins, said the technical picture shows that gold prices are quite optimistic in the near term. “However, when it is overbought near $2,200, a correction is inevitable,” Millman said.

Gold had a month of triple-digit gains. This expert expects precious metal prices to increase in the last two quarters of the year. But in the short term, the market needs some breathing space. This week, he has a neutral forecast for gold prices.

FXTM market analyst Lukman Otunuga also believes that gold will decline. However, the short-term adjustment does not affect the upward trend of this precious metal's price in the medium and long term.

According to Otunuga, the Fed continues to signal interest rate cuts this year, but the extent of easing depends on upcoming data. For gold to rally strongly again, the market needs more disappointing economic data in the coming weeks and months.