As wage inflation rises, sentiment towards gold is improving.

The growing inflationary pressures and central banks that are not in a rush to raise interest rates have boosted sentiment in the gold market, and prices have exceeded $1,800 per ounce.

Despite the fact that gold has risen above $ 1,800 per ounce, some analysts, such as Ole Hansen, Saxo Bank's head of commodity strategy, believe that prices must rise above $ 1,835 per ounce in order for gold to recover.

Phillip Streible, the chief market strategist at Blue Line Futures, said he is also expecting $ 1,835 an ounce, and added that he is neutral towards gold until this level is broken.

Last week, 18 Wall Street analysts took part in the gold survey. 10 of them, or 56%, called for an increase in gold prices. Two analysts, who made up 11%, voted for bearish sentiment in the near future, while 6 people, or 33%, remained neutral.

622 votes were cast in the Main Street online polls. Of these, 326 respondents, or 52%, expected an increase in gold prices. Another 188 voters, or 30%, said they expected a decline, while 108 voters, or 17%, were neutral.

At the end of the previous week, the rise in gold prices occurred on the same day when the US government reported higher employment figures in October than predicted. The U.S. Department of Labor said 531,000 people; economists had expected an increase in the number of jobs by about 425,000.

However, some analysts said that gold investors have focused on the growth of wage inflation. The report says that wages have increased by 4.9% over the past 12 months.

Not only is inflationary pressure rising, but the Fed and other central banks continue to downplay the growing threat. And while the U.S. central bank has said it is reducing its monthly bond purchases, Fed Chairman Jerome Powell said now is not the right time to raise interest rates.

After the Fed's decision on monetary policy, the Bank of England did not meet expectations and left interest rates unchanged as well. Markets expected the Bank of England to raise interest rates.

However, not all analysts are optimistic about the precious metal. Darin Newsom, president of David Newsom Analysis, said gold prices need to rise above $1,835 an ounce to break the current sideways pattern. However, he added that the US dollar is attracting some attention from the bulls, as the US dollar index is trading at a critical point of resistance, at 93.50 points.

At the same time, managing director of Bannockburn Global Forex Mark Chandler said he is not sure if gold is ready for a breakout. He added that next week's CPI data could lead to higher interest rates along with the US dollar, which will put pressure on gold prices.

David Madden, Equiti Capital's market analyst, said he also follows the US dollar. However, the US dollar may form the nearest top after the Fed's monetary policy meeting, adding that much more positive economic data is needed to create new momentum for the US dollar.