American investors believe that gold needs an adjustment before they continue to accumulate. According to a recent survey by Kitco News, both Wall Street and Main Street investors are still betting on gold for more profits. Out of 14 Wall Street analysts, 10 predict that gold prices will rise further this week, while three expect prices to remain steady and only one foresees a decrease. On the other hand, 149 individual investors on Main Street are concerned about the high trading levels of gold, with 64% expecting an increase, 19% predicting a decrease, and the rest anticipating sideways movement.
Despite the bullish sentiment among many analysts, some see gold moving sideways in the near future. They believe that the market is overbought and in need of a correction after a prolonged period of price increase. Last week, gold prices fluctuated significantly, reaching a low near 2,370 USD per ounce. The general consensus among bearish analysts is that the market needs a sell-off to alleviate the pressure before resuming its upward trend.
However, there is optimism among some analysts who believe that geopolitical tensions and supportive macroeconomic conditions will continue to boost gold prices. The looming US Federal Reserve meeting in June, where interest rate cuts may be discussed, is expected to solidify gold as a safe haven until the US presidential election in November. As such, some experts predict that gold will continue to rise in value despite concerns about its current high trading levels.
In conclusion, while there is growing belief among some investors that a correction is necessary for gold’s future trajectory, many others remain optimistic about its prospects. The upcoming events such as the Fed meeting and the US presidential election will likely shape the future trajectory of gold prices. As such
