Price Bounce Expected To Continue
Tuesday, 29 May 2018 05:14 WIB | GOLD CORNER |Gold OutlookGold Corner

Wall Street and Main Street both look for gold to continue a price recovery this week, based on the Kitco News weekly gold survey.

Gold recouped the $1,300-an-ounce level during the latter part of last week after hitting its weakest price of 2018 on Monday. Catalysts behind the comeback included a technical bounce, Federal Open Market Committee minutes that did not show any signs that policymakers want to tighten any more than they have already signaled, and cancellation of a summit between the leaders of the U.S. and North Korea.

Eighteen market professionals took part in the survey. There were 11 votes, or 61%, calling for gold prices to rise. Another four voters, or 22%, were looking for gold prices to ease, while three voters, or 17%, see prices unchanged or sideways.

Meanwhile, 730 voters responded in an online Main Street survey. A total of 393 respondents, or 54%, predicted that gold prices would be higher in a week. Another 243 voters, or 33%, said gold will fall, while 94, or 13%, see a sideways market.

 œGold rebounded¦after the Fed minutes seemed to suggest that they were willing to let inflation run hot, said Phil Flynn, senior market analyst with Price Futures Group. œEven though the strong dollar weighed on the market last week, strong physical demand and increasing geopolitical risk should allow us to have a bullish week.

Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, also looks for gold to rise.

œThe factors that have weakened gold in recent weeks and months”easing of international tensions, particularly over Korea; higher interest rates; and a strong stock market”are all in the process of unraveling, Day said. œHigher rates and a June hike [are] already priced into the gold market, but if the Federal Reserve goes slower after that, it will be positive for gold.

Sean Lusk, director of commercial hedging with Walsh Trading, figures gold could challenge $1,330 again in the weeks ahead.

œThere is some uncertainty in the air with a little uneasiness in the stock market, Lusk said. œWe hit bargain hunting under $1,300.

Added Adam Button, managing director of ForexLive: œThe geopolitical sands are shifting and hopes for a more peaceful world have been dashed by moves on Iran and North Korea. That uncertainty will lend a bid to gold.

Meanwhile, David Madden, market analyst at CMC Markets, is among those who are bearish on gold in the near term. He added that gold has been in a two-month downtrend and this move appears to be a so-called dead-cat bounce. Madden said that he would need to see prices above $1,326 to call an end to the current downtrend.

Neil Mellor, currency strategist at New York Bank of Mellon, said he is bearish on gold, commenting that he would need to see a rise in wage inflation in next week™s U.S. employment numbers to see a case for higher prices. Further, he noted there is no inflation in the global marketplace.

Ralph Preston, principal with Heritage West Financial, also looks for gold to ease.

œWe might see a pop higher on a geopolitical event, but it will be difficult for gold to sustain a rally if the U.S. dollar begins to rally on safe-haven flows, Preston said.

Ken Morrison, editor of the newsletter Morrison on the Markets, does not look for a big move either way in the next week.

œGold shook off the dollar strength and managed to rally near the downtrend line of resistance at $1,310, Morrison said. œI expect the market spends most of the next week consolidating in a $1,295-$1,310 range, basically a sideways pattern.

Source: Kitco News

RELATED NEWS

Gold to keep bullish trend this week: ECB, U.S. data in focus
Monday, 9 September 2019 11:35 WIB

After a very volatile session, gold is closing with a second straight week of losses last Friday while analysts remain bullish but slightly more cautious for this week. Seeing gold hit new fresh six-year highs, then drop more than $50 on a weekly basis has been unnerving for traders. Yet, analysts ...

Bearish Cracks Appearing In Bullish Gold Market
Monday, 19 August 2019 15:16 WIB

After three-straight weeks of gains, cracks are starting to appear in gold's bullish veneer, particularly among Wall Street analysts, according to the latest results of the Kitco News Weekly Gold Survey. It has been a volatile week for the precious metal as unprecedented recession fears and new low...

Wall Street, Main Street Sill Bullish On Gold, But Caution Creeping Higher
Monday, 12 August 2019 12:41 WIB

The market remains emphatically bullish on gold. But, looking past the headlines, the yellow metal is beginning to look overbought, according to some analysts. The gold market is on track to see its biggest weekly gain in more than three years as prices trade near a fresh six-year high. Although ec...

Gold Survey Shows Bulls In Full Control
Monday, 5 August 2019 13:19 WIB

The gold bears had their chance to take control of the market but failed, and now the bulls are in full control as both Wall Street and Main Street expect to see higher prices in the near-term as uncertainty dominates financial markets. "The bears tried to break the market and they failed so now we...

Wall St., Main St.: Gold To Shine During FOMC Week
Monday, 29 July 2019 14:29 WIB

Wall Street and Main Street both look for gold prices to climb this week, with the Federal Open Market Committee widely expected to cut U.S. interest rates, according to the weekly Kitco News gold survey. Wall Street respondents cited a dovish Fed, technical-chart momentum in gold and the ability o...

ANOTHER NEWS
Hong Kong shares finish sharply lower
Monday, 16 September 2019 15:22 WIB Hong Kong shares fell on Monday following last week's healthy gains, while investors were also spooked by fresh violent protests in the city and data further highlighting weakness in the Chinese economy. The Hang Seng Index lost 0.83 percent, or...

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.