FX.co ★ Where will gold prices be by the end of the week?

According to the latest weekly gold survey, bullish sentiment among analysts has largely evaporated, while retail investors are still optimistic. Senior market analyst at Barchart.com, Darin Newsom, maintains a bearish view on the price of the precious metal for the current week, as it's unlikely that the Fed will lower rates at its Wednesday meeting.

Ole Hansen, head of commodity strategy at Saxo Bank, also retains his bearish stance ahead of the U.S. central bank meeting, especially after the released CPI and PPI figures, which were higher than expected. This prompted the Fed to reconsider further rate cuts.

Adrian Day, President of Adrian Day Asset Management, sees no reason to abandon the bullish sentiment, as eventual easing by the Fed will occur, and gold demonstrates price stability against the backdrop of high rates.

Colin Cieszynski, chief market strategist at SIA Wealth Management, remains neutral on gold. He believes gold's direction will only be determined after the meeting, and that direction will depend on Powell's words.

This time, 11 analysts participated in the survey. Nearly three-quarters of Wall Street experts believe that prices will either decline or remain sideways. Only three analysts, or 27%, believe that prices will rise. Similarly, the same number of experts predicted that prices will be limited to the same range. The majority, six analysts comprising 46%, clearly forecast a price drop.

In the online survey, 194 votes were cast, with the majority of Main Street investors still predicting further gold price growth. 110 retail investors, accounting for 56%, expect prices to rise this week. Another 54, or 29%, believe that the price will decline, while 30 people, or 15%, were neutral on the short-term prospects of the precious metal.

Central banks will take center stage in the weekly news this week. On Tuesday, decisions on interest rates will be made by the Bank of Japan and the Reserve Bank of Australia, on Wednesday by the Federal Reserve System of the United States, and on Thursday by the Bank of England and the Swiss National Bank.

Attention should also be paid to the start of construction of housing in the United States and building permits. Weekly jobless claims, the Federal Reserve Bank of Philadelphia's production survey, PMI, and existing home sales are also noteworthy, as these are the news events that will affect the volatility of the yellow metal.

Marc Chandler, Managing Director at Bannockburn Global Forex, said since central banks are not rushing to lower rates, gold breaking below $2,150 may lead the price to $2,130 and possibly $2,110.

James Stanley, senior market strategist at Forex.com, also expects a decline. Given the approach to $2,200, gold needs a pullback. Especially since profit-taking is likely on Wednesday.

Mark Leibovit, publisher of the VR Metals/Resource Letter, also expects a short-term decline in gold prices. According to him, the exception is silver, which is trying to catch up, so they are opening a long position on the silver ETF.