After reaching peak prices of 2,400 USD per ounce, American investors are concerned about the sustainability of gold’s upward trend. A recent survey by Kitco News showed that both Wall Street and Main Street analysts remain optimistic on gold’s future prospects. While eight out of ten Wall Street analysts predict gold prices will rise even higher this week, one expects them to decrease. On Main Street, 64% of individual investors anticipate a price increase this week, while 19% expect a decrease in prices.
Despite the concerns about overbought conditions and potential sell-offs, many analysts believe that world macroeconomic conditions support gold prices. Colin Cieszynski, chief market strategist at SIA Wealth Management, stated that he is optimistic about gold’s prospects for the immediate future due to high macro risks and geopolitical tensions. Meanwhile, Adrian Day, Chairman of an asset management company, believes that gold will move sideways until the US Federal Reserve (Fed) meeting in June when it is likely to announce its stance on reducing interest rates.
While some analysts see corrections as necessary for the market to wait for psychological differentiation before continuing to accumulate further, others predict that gold can be a safe haven until the US presidential election in November. As the world gold price reached close to 2,360 USD per ounce last weekend, investors need to carefully monitor market conditions before making any investment decisions.
