Many analysts say the gold market is fluctuating amid growing expectations for economic recovery and concerns about rising inflation. However, according to a survey, both Wall Street and Main Street believe that inflation will tip the scales and push gold prices higher.

"The previous week was impressive since gold overcame the headwind and closed higher," said Adam Button, chief currency strategist at Forexlive. "However, there is the risk that rising Treasury yields will undermine the rally."

In any case, many investors have not given up on precious metals, especially since the US government is considering a new stimulus package worth $ 1.9 trillion.

"So far, all events are favorable to gold, especially the overly loose monetary policy around the world," said Adrian Day, President and CEO of Adrian Day Asset Management. "In the medium and long term, this will lead to a significant increase in gold prices, as precious metals and global liquidity are closely intertwined," he added.

But not everyone is sure that gold is ready to move higher. Charles Nedoss, senior market strategist at LaSalle Futures, said he expects gold prices to continue to consolidate.

He added that, in his opinion, the market is waiting for additional information on Biden's proposed plan to stimulate the economy.

"The gold chart is getting a little sloppy, so I think we are consolidating at current levels," Nedoss said. "Gold really needs news on stimulus because that's what will put pressure on the US dollar."

Darin Newsom, president of Darin Newsom Analysis, said this week will be important in determining the outlook for gold. He added that precious metals are still dominated by the US dollar, which is why if the currency strengthens, it would create a pattern that will be negative for gold.

"I think that right now, the market wants to consolidate as we look forward to what will happen next with US bond yields and the US dollar," Newsom commented. "There are so many mixed signals in the market right now," he added.

Meanwhile, Marc Chandler, managing partner and chief market strategist at Bannockburn Global Forex said he expects gold prices to decline in the short term, as the US dollar will remain a strong impediment to the precious metal in the near future, despite anticipated stimulus.

This week, the Federal Reserve will announce its decision on monetary policy. Preliminary data on US GDP will also be released on Thursday.

Avery Schoenfeld, chief economist at CIBC Capital Markets, wrote: "Fed Chairman Jerome Powell has the makings of a good poker player. He almost seems to show you his cards, claiming that he has a strong hand in the fight against inflation, and therefore there is no need to raise interest rates until three more years have passed, and there is no need to even start talking about slowing down. Should investors heed this? It is up to them to decide. "