Wall Street Doubts Gold's Rally While Retail Investors Remain Optimistic
A Kitco survey showed that 41% of Wall Street analysts expect gold to fall, while 42% of Main Street investors see it rising, following a 4.12% weekly decline in the metal.
A survey conducted by Kitco News showed that 7 out of 17 Wall Street analysts, or 41%, expect gold to fall in the coming period, while 4 analysts, or 24%, expected it to rise, and 6 analysts, or 35%, saw it trading sideways.
In an online Main Street survey of 161 respondents, 67 participants, or 42%, expected the metal to rise, while 41 participants, or 26%, saw it falling, and 53 participants, or 33%, expected it to stabilize.
The survey comes after a difficult week, with spot gold recorded at $3,995.81 per ounce, down 0.71% during the session and 4.12% over the week, under pressure from rising oil, inflation fears, and bets on US interest rate hikes.
This division between analysts and retail investors coincides with anticipation of the US Federal Reserve's decision on Wednesday, a meeting in which traders await the interest rate path before the end of the year.
What do these terms mean?
Wall Street: A term used for major financial institutions and professional analysts in US markets.
Main Street: A term referring to retail investors and the general public outside major financial institutions.
Sideways Trading: A condition where the price moves up and down within a narrow range without a clear direction.
Spot Gold: The buying and selling price of gold for immediate delivery, used as a global benchmark for the metal's prices.
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