17.06.202413:09 Forex Analysis & Reviews: Wall Street and Main Street are optimistic

According to the latest weekly gold survey, most industry analysts and retail investors predict a rise in gold prices this week.

James Stanley, a senior market strategist at Forex.com, believes that precious metal prices will increase as bulls have established strong support at the $2300 level.

Adrian Day, the president of Adrian Day Asset Management, shares this view. He also believes prices will rise due to dovish economic news from the US. Lower inflation indicators (producer prices) and higher unemployment claims contribute to lower interest rates. Additionally, geopolitical tensions are escalating, with increased attacks on Israel by Hezbollah and Russian military ships in the Caribbean.

Colin Cieszynski, chief market strategist at SIA Wealth Management, agrees with the previous analysts.

Sean Lusk, co-director of commercial hedging at Walsh Trading, also concurs. He noted that China refrained from buying gold last week, thinking they could purchase the precious metal at a lower price. However, Sean Lusk mentioned that China might say whatever it wants, but they must back up all their money printing. Furthermore, he stated that the sharp downward correction in gold prices that occurred the Friday before last was not justified by the economic news from the US. But the market will do what it intends, and sometimes, it's impossible to fight against it.

A survey of 13 Wall Street analysts revealed a more optimistic outlook for the short-term prospects of the precious metal after last week's results. Eight experts, making up 62%, expect prices to rise. Two analysts, or 15%, predict a decline. The remaining three, accounting for 23%, believe gold will trade sideways throughout the week.

An online poll received 216 votes, with Main Street investors being more cautious than their institutional counterparts but still generally positive. 117 retail traders, making up 54%, expect gold prices to rise. 49, or 23%, anticipate a price decline. The remaining 50 respondents, making up 23%, expect prices to remain stable.

Given the Federal Reserve's monetary policy decision, markets will shift their focus to Europe. On Thursday, the Swiss National Bank and the Bank of England will announce their monetary policy decisions. The Empire State Manufacturing Index will be released on Monday. On Tuesday, we will see the release of May retail sales. Thursday will bring reports on May housing starts, building permits, weekly jobless claims, and the Philadelphia Fed Manufacturing Index. The week will conclude with news on existing home sales.