Gold Prices Expected to Regain Footing
Monday, 2 March 2020 12:57 WIB | GOLD CORNER |Gold CornerGold Outlook

Participants in the weekly Kitco gold survey haven't given up on the precious metal despite Friday's sharp sell-off.

Main Street remains solidly bullish. And while Wall Street was somewhat mixed, the largest bloc of voters called for a rebound in prices.

Fifteen market professionals took part in the Wall Street survey. Seven, or 47%, called for gold to rise. Five voters, or 33%, called for further weakness. Three respondents, or 20%, were either neutral or predicted sideways prices.

Meanwhile, 1,619 votes were cast in an online Main Street poll, which was the most in 2 ½ years. A total of 1,079 voters, or 67%, looked for gold to rise in the this week. Another 303, or 19%, said lower, while 237, or 15%, were neutral.

Still, optimism remains.

"I remain bullish for this week in gold," said Kevin Grady, president of Phoenix Futures and Options. "The news about the coronavirus continues to worsen, so I think gold will remain volatile yet firm. The interesting thing to note is that the flight to quality remains steady in bonds but intermittent in gold."

Richard Baker, editor of the Eureka Miner™s Report, explained that profit-taking, forced long liquidation and low consumer demand in China likely all played a part in Comex gold retreating over the last week. But he looks for a comeback.

"Given the mounting uncertainty surrounding the impact this illness [coronavirus] will have on the U.S. economy and the world, I believe it likely that gold will recover lost ground this week to the $1,650 level...and to $1,800 per ounce in the weeks to come," Baker said.

He later added, "The lustrous metal and U.S. Treasurys will remain global safe havens of choice in a world of increasingly negative interest rates (the German Bund hit a new negative record low last week). In the U.S., the 10-year real rate [which adjusts for inflation] is solidly negative, sustaining a very bullish environment for a non-interest earning asset like gold."

Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, also said higher since "gold should act well during market instability."

Others fear further weakness.

"Momentum is to the downside," said Charlie Nedoss, senior market strategist with LaSalle Futures Group. He pointed out that the metal has now fallen below $1,621 area, which is the 50% retracement of the prior rise from the Feb. 5 low of $1,551.10 an ounce to last Monday's high of $1,691.70.

Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the annual In Gold We Trust report, also said lower as margin calls kick in and sentiment and the heavily bullish position in the Commitments of Traders report looks worrisome. Further, if fiscal and monetary stimulus should be announced over the weekend, a relief rally in equities could hurt gold prices, he added.

Daniel Pavilonis, senior commodities broker with RJO Futures, looks for gold to be sideways.

"With the [stock] markets selling off the way they are, gold should be up a lot higher," he said.

However, he noted, there are some rumblings in the market that perhaps the Federal Reserve will undertake some action to underpin the stock market. If so, that could take away some of the safe-haven demand for gold.

"I would be more inclined to take a profit here in gold if I was long," he said. "That's why I'm saying this week maybe sideways."

Colin Cieszynski, chief market strategist at SIA Wealth Management, described himself as neutral.

"On the bearish side, despite high stock-market volatility through the week, gold peaked on last Monday and has been sliding. Also, the global active coronavirus case count has been declining through the week [so] it's possible a lot of the hype could drop off at some point.

"On the bullish side, the increasing measures being undertaken by governments and businesses around the world to combat the outbreak could still have a larger and longer-lasting impact on the global economy, which may force the central banks to make a coordinated effort to get things going again at some point."

Source: Kitco News

RELATED NEWS

Gold price bull rally: the drive is alive
Monday, 6 July 2020 13:40 WIB

Gold achieved an important milestone this past week as priced pushed above $1,800 an ounce for the first time since 2011 and with strong fundamentals and what appears to be an unstoppable uptrend, retail investors and Wall Street analysts are significantly bullish on gold. Of the 17 Wall Street pro...

Emas dan Saham Telah Berdamai
Friday, 3 July 2020 14:53 WIB

Untuk pertama kalinya tren indeks berjangka emas tidak terpengaruh oleh sentimen pasar saham selama masa pandemi COVID-19. Di sisi lain, emas saat ini cenderung dipengaruhi oleh tingkat imbal hasil riil (real yield) dari pasar obligasi, khususnya obligasi AS alias US Treasury tenor 10 tahun. Saat ...

Towards the end of July 2020, Prepare a Buy Option for Gold Futures
Thursday, 2 July 2020 15:00 WIB

Initial trials of the COVID-19 vaccine developed by Pfizer Inc. and BioNtech SE have shown positive results, which are safe and enable patients to produce antibodies to the virus. This good news affects the movement of gold prices edged down 0.60% at the close of trading Wednesday, July 1, 2020 at t...

July, Gold is Still Promising
Wednesday, 1 July 2020 16:41 WIB

Index futures closed above $ 1,800 per ounce on Tuesday, June 30, 2020, which also means closing in the first half of this year. Over the past six months gold has become the most active futures contract and has risen more than 16% from its opening position in early 2020. The COVID-19 outbreak has w...

Wall St., Main St. Look for Gold Prices to Keep Shining
Monday, 29 June 2020 13:42 WIB

Gold prices should maintain maintain their recent upward momentum as the COVID-19 pandemic keeps spreading and prompting worries about the economy, according to respondents in the weekly Kitco News gold survey. "Rising uncertainty about the virus will cement easy-money policies," said Adam Button, ...

ANOTHER NEWS
US Diplomat in Hong Kong Says Security Law Use a 'Tragedy'
Tuesday, 7 July 2020 10:48 WIB The top American diplomat in Hong Kong said Monday that it is a œtragedy to use the semi-autonomous Chinese territory's new national security law to chip away at œfundamental freedoms in the Asian financial hub and create an œatmosphere...

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.