After a week of rare consensus, Wall Street analysts are now sharply divided on the short-term outlook for gold prices, following an exceptionally volatile trading week in which the precious metal surged to fresh all-time highs.
Escalating geopolitical tensions and growing internal policy uncertainties have driven investors back into gold as a safe-haven asset. However, with prices hovering near record levels, many experts are questioning whether the rally can sustain its momentum in the near term.
Gold markets saw volatility return in full force last week, with spot gold prices swinging sharply as investors reacted to political headlines and shifting risk sentiment.
Spot gold opened the week at $4,529.89 per ounce. According to Kitco, news surrounding a U.S. Department of Justice lawsuit involving the Federal Reserve triggered an immediate surge in demand, sending prices sharply higher.
Gold quickly spiked to $4,591.53 per ounce around 7:30 p.m. Eastern Time on Sunday. By early Monday morning, spot prices were trading just below the $4,600 per ounce level before pulling back slightly to test key support near $4,582 per ounce.
Volatility intensified as U.S. markets opened. By 8:45 a.m., gold broke above $4,600 per ounce, reaching nearly $4,616, before plunging to $4,586 just minutes before the stock market opened.
The sell-off was short-lived. Strong buying interest returned, pushing prices back up to around $4,630 per ounce by late morning. Throughout Tuesday and Wednesday, gold traded in a wide range between $4,580 and $4,630 per ounce.
A late-session rally on Wednesday propelled spot gold to its weekly high of $4,640 per ounce, marking yet another record level for the metal.
Although prices softened during overnight trading, the $4,580 per ounce support level held firm. The most dramatic move of the week unfolded on Friday morning.
After failing to break above $4,620 per ounce around 10 a.m., gold prices collapsed sharply, plunging to the weekly low of $4,536 per ounce within half an hour. However, the rebound was just as swift, with spot gold climbing back toward $4,600 per ounce by 11:30 a.m.
Gold prices then stabilized, trading within a narrow $20 per ounce range into the weekend.
The latest weekly gold survey from Kitco highlights a clear split among Wall Street analysts regarding gold’s near-term trajectory.
Out of 16 market experts surveyed:
8 analysts (50%) expect gold prices to rise further next week.
4 analysts (25%) forecast a decline.
4 analysts (25%) anticipate sideways movement and consolidation.
Those with a bearish or neutral stance argue that much of the geopolitical risk is already priced in, increasing the likelihood of a short-term correction after such a rapid rally.
In contrast, retail investors continue to display strong optimism. Kitco’s online poll, which attracted 247 votes, showed bullish sentiment strengthening following gold’s latest record highs.
Survey results revealed:
192 retail investors (78%) expect gold prices to rise further.
27 respondents (11%) predict a pullback.
28 participants (11%) believe prices will move sideways.
The sustained enthusiasm among retail investors reflects growing confidence that gold’s longer-term uptrend remains firmly intact.
Next week’s economic calendar is packed with critical U.S. data related to inflation, growth, and consumer sentiment—factors that could influence gold price movements.
Monday: U.S. markets closed for Martin Luther King Jr. Day
Tuesday: ADP private-sector employment report
Wednesday: Pending Home Sales for December; U.S. President Donald Trump scheduled to speak at the World Economic Forum in Davos
Thursday: Final Q3 GDP data, Personal Consumption Expenditures (PCE) inflation readings, weekly jobless claims
Friday: Preliminary S&P Global PMI for manufacturing and services; final University of Michigan consumer sentiment report
Despite the heavy economic calendar, analysts believe geopolitical developments will continue to play a dominant role in shaping gold price action. Any escalation in global tensions or policy uncertainty could quickly overshadow traditional economic indicators.
The past week underscores how sensitive the gold market has become to political headlines and investor sentiment. While Wall Street analysts remain divided over short-term direction, retail investors continue to bet on further upside.
As long as geopolitical risks persist and uncertainty clouds global economic policy, gold is likely to maintain its appeal as a safe-haven asset—though sharp pullbacks and heightened volatility should not be ruled out in the near term.
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