empty
20.03.2023 02:43 PM
Is the gold market overbought?

This image is no longer relevant

Gold prices could rise this week as bullish sentiment grows among retail investors seeking to protect themselves from a major banking crisis like 2008. Nevertheless, Wall Street analysts take a more conservative position in the short term.

At this point in time, the precious metal is posting its best weekly gain since March 2020.

According to the latest gold survey, sentiment among Main Street investors rose to a three-month high. However, Wall Street analyst sentiment is more varied, with bullish sentiment holding only a slight edge while the rest are left out.

As the growing turmoil in the financial markets will force the Federal Reserve to end its aggressive year-long tightening cycle at the next meeting, many analysts are optimistic about gold. Although many believe the market is overbought and gold is on the verge of a new all-time high.

Last Friday, 22 analysts took part in the Wall Street gold survey. Nine of them, or 41%, were optimistic about the current week. Five analysts, or 23%, are on the bear side. And eight analysts, or 36%, were neutral.

On Main Street, 707 votes were cast in an online poll. Of these, 445 respondents, or 63%, expected gold prices to rise. Another 169 voters, or 24%, said the price would go down. And 93 voters, or 13%, were neutral.

This image is no longer relevant

The bullish outlook on Main Street comes as the precious metal rose more than 5% last week, posting its best weekly gain in three years.

This image is no longer relevant

The survey showed that, on average, retail investors expect prices at $1,922 per ounce by the end of the week:

This image is no longer relevant

However, looking at the details of the results, less than a third of respondents believe that gold prices will fall below $1,900 an ounce:

This image is no longer relevant

Wall Street analysts are much more optimistic. They are expecting stable prices of $2,000 an ounce this week.

This image is no longer relevant

Gold will also be sensitive to improved market sentiment if government regulators manage to contain the crisis.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.