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The latest results of the weekly gold survey show that Wall Street analysts are pessimistic about the precious metal, as the possibility of tightening US monetary policy supports the US dollar and increases bond yields. At the same time, the optimistic mood among retail investors remains.
Some analysts also noted that there will still be weak interest in gold, as the focus is on a record rally in stock markets.
Last week, 18 Wall Street analysts took part in the gold survey. Among the participants, 4, or 22%, voted for a price increase. At the same time, 11 analysts, or 61%, said that prices were falling. Three analysts, or 17%, rated gold neutrally in the near future.
850 votes were cast in online polls. Of these, 382 respondents, or 45%, expected an increase in gold prices this week. Another 309 people, or 36%, voted for the reduction, while 159 voters, or 19%, were neutral.
It is worth noting that strong bearish sentiment towards gold appeared after the Fed held a monetary policy meeting and offered to publish its plans to reduce monthly bond purchases after the November meeting. The updated economic forecasts of the central bank also showed that the committee sees the potential for raising interest rates in December 2022 and that rates could rise to 1% in 2023.
Such an aggressive mood of the US central bank strengthens the US dollar and increases bond yields, which are two serious obstacles to the growth of gold.
Nevertheless, the bearish attitude towards this precious metal may be stopped in the near future.
According to Marc Chandler, managing director of Bannockburn Global Forex, the sale of gold may be limited, since the current growth in bond yields is exaggerated.
There are also positive opinions regarding the growth of the specified precious metal. For example, Ole Hansen, head of the commodity strategy at Saxo Bank, believes that the growth of gold is not far off due to the fact that rising energy prices, especially in Europe, will lead to an increase in inflation. He also added that investors are also ignoring the growing risk associated with potential default on Chinese Evergrande bonds.
It should also be noted that the impending credit and liquidity crisis may create new demand for diversification.
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