Gold prices are expected to increase this week

Most experts and investors believe gold prices will rise this week, but some remain cautious ahead of the US election and the Fed's interest rate decision.

Gold's correction over the weekend and many unpredictable factors surrounding the US election are affecting investors' expectations for the precious metal's performance this week.

Of the 17 analysts surveyed this week, nine predicted gold would rise, while six predicted the opposite. The remaining two remained neutral and waited to see the election results and the Federal Reserve’s decision.

As for individual investors, over 139 (over 60%) are bullish on gold, including predictions made before the sell-off on October 31. 22% predict a fall in gold prices and 17% are neutral on this week’s performance.

Rich Checkan, president of Asset Strategies International, said he still sees gold prices rising this week. There are a number of variables that could trigger a move in either direction, he said. Disappointing jobs data could be enough to prompt the Fed to cut another 25 basis points. Lower interest rates are good for gold. The U.S. election results could scare 50% of the population, regardless of which candidate wins. And if the election results are drawn out and contested, that could stoke fears.

Ultimately, Rich Checkan believes that the profit-taking over the past few days has been enough to allow gold to rally closer to $2,800. Long-term, there is no doubt that gold prices will go higher.

Meanwhile, Colin Cieszynski, chief strategist at SIA Wealth Management, said: "I am neutral on gold this week. Predicting the short-term direction is becoming more difficult with all the event risks in the coming days such as the US election, the Federal Open Market Committee meeting." Gold has rallied sharply to nearly $2,750 and he believes that it may start to enter a correction phase but the long-term uptrend remains unchanged.

Marc Chandler, managing director at Bannockburn Global Forex, said that most of the support has been priced in, so the risk is tilted to the downside. Gold peaked but stopped just below $2,800, he said. It is worth noting that gold sold off sharply when US stocks fell on October 31, almost completely liquidated to meet margin calls.

He noted that five central banks from the G10 group are meeting this week. He forecasted a scenario where the Fed and the BOE are expected to cut by 25 basis points, Sweden will cut by 50 basis points, and Norway and Australia will keep their rates unchanged.

“Then, of course, there is the US election on November 5. I suspect that a Trump win, even discounted, would still be positive for gold, while a Harris win would have unclear implications,” he said.