Last week, gold dropped significantly below $2,000 per ounce. Wall Street analysts are concerned that the sell-off may not be over. Bearish sentiments have also significantly intensified on Main Street, but bulls still led in survey forecasts.

The past week was the worst for gold since February.

One of the major drivers of the decline in gold prices was the rise of the U.S. dollar.

With stable U.S. macroeconomic data, there was demand for the dollar, forcing the Federal Reserve to reconsider interest rates. The market had to adjust its expectations regarding rate hikes.

According to the CME FedWatch Tool, there is currently only a 19.6% chance of another 25-basis-point rate hike in June.

According to the weekly survey of Wall Street analysts, it is clear that the bears are winning the vote. The majority among the 15 participating analysts from Wall Street were bear, with 53% forecasted lower levels. Only 20% were optimistic about prices, while 27% remained neutral.

The Main Street side remained bullish, but bearish sentiments increased significantly. Out of the 927 participating retail investors, 47% expected price increases, 38% predicted declines, and 15% remained neutral.

Optimism regarding the resolution of the debt ceiling debates is another short-term obstacle for gold. Nevertheless, the long-term trend in the precious metal remains bullish.