Gold Prices To Stay Healthy Amid Continuing Virus Worries
Monday, 17 February 2020 15:49 WIB | GOLD CORNER |Gold CornerGold Outlook

Voters in the weekly Kitco gold survey are bullish on the metal this week, citing gold's ability to hold up even when the dollar and equities strengthen, technical factors and ongoing worries about how the coronavirus could impact the global economy.

Seventeen market professionals took part in the Wall Street survey. Eleven, or 65%, called for gold to rise. There was one vote, or 6%, saying gold would fall, and five, or 29%, calling for a sideways market.

Meanwhile, 726 votes were cast in an online Main Street poll. A total of 472 voters, or 65%, looked for gold to rise in the this week. Another 148, or 20%, said lower, while 106, or 15%, were neutral.

Richard Baker, editor of the Eureka Miner's Report, looks for the coronavirus outbreak to get worse, suggesting that gold "will regroup to $1,590 this week with its eyes on breaking the $1,600 level." He added that he sees silver rising to around $17.85 an ounce.

"Is it a pandemic? Nobody knows for sure," Baker said. "Coronavirus infections are being recounted to the upside in China, and the death toll continues to rise. This is an economic and viral shock to the world that is hard to quantify. That uncertainty alone underpins a range for safe-haven gold -- a solid floor around $1,500 per ounce and the mercurial $1,600 level above -- at least for the near term. If China's growth falls to just several percent and supply chains are disrupted for months, the upper level for gold could be much higher, perhaps $1,800."

Charlie Nedoss, senior market strategist with LaSalle Futures Group, said he is short-term bullish on gold as long as the April futures remain above the 10-day moving average of $1,572.08 and 20-day of $1,573.75. He also pointed out that the metal has made higher highs and higher lows the last two days.

"It's doing this all with a stronger dollar [for most of February]," he continued. Normally a muscular greenback hurts gold.

Phillip Streible, chief market strategist with Blue Line Futures, also said higher. Should gold top $1,590, it could climb to $1,600 quickly, he said.

"With equities making new highs and the dollar pushing up as well, gold futures are continuing to hold and are gathering some strength," Streible said. "It's a nice set-up for coming into this week."

Bob Haberkorn, senior commodities broker with RJO Futures, said gold may test $1,600 an ounce.

"Equities are ¦ strong, but [investors] are a little nervous about the coronavirus¦.I think that alone will keep gold strong," Haberkorn said.

"At the end of the day, gold is moving higher because of [accommodative] central banks. That's the main reason. The coronavirus is an added thing to push it higher."

Mark Leibovit, publisher of VR Metals/Resource Letter, said he is bullish but added that the "cycle high warrants caution."

Meanwhile, Sean Lusk, co-director of commercial hedging with Walsh Trading, was the survey participant expecting a pullback in gold prices, citing seasonal factors and potential for profit-taking by the bulls.

"The second part of February into March “ from a seasonal perspective “ is usually pretty weak for gold, and we see some pullbacks," Lusk said. "The reason is that you're past the Chinese Lunar New Year holiday. You are past Valentine's Day. You're past some traditional physical-buying time periods."

Still, he said, any pullback could be minor, as past price dips have been bought. Further, if the coronavirus situation worsens and spreads to other countries, prompting a big sell-off in stocks, investors may turn back to gold as a safe haven.

Kevin Grady, president of Phoenix Futures and Options LLC, is one of the survey participants who is neutral on gold prices for this week.

"I think that the news coming out of China regarding the coronavirus is putting some pressure on the stock market and giving a bid to metals prices," he said. "That being said, I do not see gold running up on the news.

"Also, stocks have been getting hit on Fridays the past few weeks and I expect today to be more of the same, especially due to the [three-day U.S. Presidents Day] holiday weekend. The fear is that there will be worse news on the virus over the weekend with the markets closed. Gold has been the beneficiary of the weekend hedging."

Source: Kitco News

RELATED NEWS

Gold Prices Expected To Shine As Governments Launch Stimulus
Monday, 6 April 2020 11:10 WIB

Gold is expected to keep rising from the mid-March lows, based on the weekly Kitco gold-price survey. The expectation comes after the Federal Reserve recently launched open-ended quantitative easing and the U.S. quickly enacted a $2 trillion fiscal-stimulus effort in response to the COVID-19 pandem...

Gold Prices Seen Building On Biggest Weekly Gain Since 2008
Monday, 30 March 2020 13:03 WIB

Seventy-one percent of the Wall Street and Main Street respondents in the weekly Kitco gold price survey look for the precious metal to build on its gains this week. Just before 11 a.m. EDT on Friday, Comex April gold was trading at $1618.10 an ounce. Even though that was down $33.10 for the day, t...

Wall St., Main St. Anticipate Comeback for Gold Prices
Monday, 23 March 2020 10:29 WIB

Wall Street and Main Street alike look for gold prices to start regaining their footing this week, based on the weekly Kitco Gold price survey. The metal tumbled since the seven-year high hit in early March, with most analysts attributing the decline to traders liquidating to raise cash after the c...

What's Next For Gold Price? COVID-19 Targets U.S., Europe; Fed Looks To Cut Rates To Zero
Monday, 16 March 2020 13:21 WIB

Markets fear just how much the COVID-19 outbreak could hurt the U.S. and Europe ” the next two regions that will be hit the hardest by the virus. And as the Federal Reserve looks increasingly ready to cut rates down to zero all in one go this week, it might be a great opportunity to buy gold, acco...

Gold price is on a path to $1,700 but volatility will be high - analysts
Monday, 9 March 2020 11:15 WIB

The Federal Reserve surprised markets earlier last week with an emergency 50-basis-point interest rate cut. This, in turn, has helped the gold market see its best weekly performance in 11 years. With benchmark bond yields continuing to fall and markets expecting to see even lower interest rates in ...

ANOTHER NEWS
European markets open higher ahead of US jobless claims data
Thursday, 9 April 2020 14:17 WIB European markets opened higher Thursday as market participants start to hope that the coronavirus pandemic is reaching a peak, but the latest U.S. unemployment claims data could hit sentiment. The pan-European Stoxx 600 climbed 1.1% in early...

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.