20.07.202112:42 Forex Analysis & Reviews: Central banks are losing confidence

According to Wall Street and retail investors, gold prices will continue to rise this week. The survey showed that investors and analysts on Wall Street still have an optimistic mood since gold reached a one-month high during the middle of the previous week.

Many analysts still see gold as additional support and a hedge against inflation. Despite the looming threat, the Fed continues to view higher inflation as a temporary phenomenon and expects to maintain its position in the field of monetary policy in the future.

Analysts also believe that central banks around the world are beginning to lose confidence in the financial markets, respectively, the precious metal remains an attractive asset.

The positive outlook for gold came after Fed Chairman Jerome Powell addressed Congress and said that although inflation may continue to rise over the next few months, the regulator still views the growth as temporary.

Last week, 16 Wall Street analysts took part in the Gold Analysis Survey. Among the participants, nine voters, or 56% were inclined to an increase in gold prices, three or 19%, expect to see lower prices this week, and four analysts or 25% expect to see sideways trading in the near future.

Main Street's online polls received 836 votes. Of these, 556 respondents, or 67%, expected an increase in gold prices. Another 144, or 17%, voted for the reduction, and 136 people, or 16%, were neutral about the price.

Adam Barton, Chief Currency Strategist of Forexlive.com, said that the impending economic risks will continue to support the growth of gold prices despite the Fed's divergent views.

On the other hand, President of Phoenix Futures and Options LLC Kevin Grady noted that after rising to a one-month high last week, the precious metal was subjected to technical pressure from sellers, adding about its neutral attitude to gold. Nevertheless, he would not sell gold since it has strong fundamental support.