50% of Wall Street Analysts Expect Gold to Rise Next Week

Wall Street analysts came close to regaining a bullish majority on gold in a weekly survey, following a week that saw a late rally in the yellow metal pushing prices back toward $4,195, shifting away from the bearish sentiment that prevailed the previous week.

The "Kitco" survey showed that 7 out of 14 Wall Street analysts, or about 50%, expect gold to rise next week, compared to only two analysts (14%) expecting a decline, and five (36%) expecting sideways movement. This distribution reflects a return of confidence among some analysts following the previous sell-off.

In contrast, retail investors remained more cautious, as the proportion of optimists did not exceed 45% out of a total of 206 votes in the "Main Street" survey. This means that analysts' conviction has not fully transferred to the retail trader segment, who seem to be waiting for clearer signals from inflation data.

Spot gold was recorded at $4,194.64 per ounce, up 1.28% on a weekly basis and 1.47% in a single day. This technical survey tracks September inflation data scheduled for October 14, which could determine whether the recent improvement is the beginning of an upward trend or merely a temporary bounce within a broader correction.

What do these terms mean?

Kitco Survey: A weekly survey conducted by the precious metals platform Kitco to measure analyst and investor sentiment regarding gold prices.

Wall Street and Main Street: Wall Street refers to analysts and professional financial institutions, while Main Street refers to ordinary retail investors.

Bullish Trend: An optimistic view expecting the price to rise, the opposite of a bearish trend which expects it to fall.