Despite growing hawkish rhetoric from central banks around the world, the gold market is hovering around $1,800 an ounce; bullish sentiment in the market indicates a positive price finish in 2022.

Ahead of the last full trading week of the year, retail investors remain optimistic about gold. At the same time, Wall Street analysts are cautious, with many saying that lower gold prices represent a strategic buying opportunity.

Although the Fed has signaled that it is not yet ready to stop the tightening cycle, analysts note that the market is beginning to discount the hawkish stance. Some say investors are now turning their attention to growing recession fears and distracting from the threat of inflation.

Frank Cholly, RJO Futures senior market strategist, said the Fed is not taking any breaks yet, but is slowing down, and that is helping gold to consolidate around $1,800.

Christopher Vecchio, head of futures and forex at Tastylive.com, believes weaker economic growth is helping to dampen real yields, which continue to support gold near $1,800 an ounce.

Last week, 20 Wall Street analysts took part in the gold survey. Among the participants, nine analysts, or 45%, were bullish in the short term. At the same time, five analysts, or 25%, predicted bearish sentiment this week, and six analysts, or 30%, believe that prices will trade in a sideways range.

In an online poll on Main Street, 772 votes were cast. Of these, 437 respondents, or 57%, expect gold prices to rise. Another 202 voters, or 26%, said the price would go down, while 133 voters, or 17%, were neutral for the near term.

According to Adam Button, head of currency strategy at Forelive.com, there will be a decline in prices this week, as hawkish comments from the central bank could affect prices.

Not only has the Federal Reserve not finished raising interest rates, European Central Bank President Christine Lagarde has also warned investors that the ECB will continue to raise interest rates by 50 basis points in 2023.

However, Button added that any drop in price could be a buying opportunity as this is a seasonal period for gold.

"Even holding steady for the remainder of the month would be a win and set up gold for a nice rally in January," he said.

Darin Newsom, senior market analyst at Barchart, said the U.S. dollar is entering a short-term upward trend, which will help lower gold prices.