Sunday, 17 November 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--

Don't go quietly into that good night: Wall Street, Main Street bullish on gold prices
Monday, 7 October 2019 13:14 WIB | GOLD CORNER |Gold OutlookGold Corner

Gold bulls are keeping the drive alive as both Wall Street analysts and Main Street investors remain firmly bullish on the yellow metal as the price has managed to regain the $1,500 level heading into the weekend, according to the latest Kitco News Weekly Gold Survey.

For many analysts, gold's ability to recoup a 2% loss at the start of the week (30/9) and regain what became a critical psychological level is a sign of strong resilience in the marketplace. Many analysts have noted that growing recession fears and financial market uncertainty continue to support gold prices in the near term.

"Everywhere investors look there is another worry," said George Gero, managing director with RBC Wealth Management. "The U.S. dollar remains the biggest headwind for gold, but this uncertainty should continue to support prices around $1,500."

Last week, 17 market professionals took part in the Wall Street survey. Twelve analysts or 71% said they see higher prices for this week. Another two, or 18%, predicted gold would fall. The remaining 2 voters, or 12%, saw a sideways market or else were neutral.

Meanwhile, 679 respondents took part in an online Main Street poll. A total of 446 voters, or 65%, called for gold to rise. Another 145, or 21%, predicted gold would fall. The remaining 88 voters, or 13%, saw a sideways market.

Wall Streets' record is now 19-16 year to date, meaning respondents have been right 54% of the time. Meanwhile, Main Street™s record fell to 18-17, meaning this group has been right 51% so far this year.

Looking ahead, although a healthy jobs report is taking some momentum away from gold prices last Friday, many analysts still expect to see higher prices as the latest employment data has not shifted expectations for another interest rate cut from the Federal Reserve later this month.

Some analysts have noted that jobs data is a lagging indicator and the disappointing ISM data released last Tuesday and Thursday paint a picture of slowing economic growth in the U.S.

"I don't think the employment data was a game changer," said Fawad Razaqzada, technical analyst at City Index. "The Federal Reserve is still going to cut rates this month and that will weaken the U.S. dollar and push gold prices higher."

Afshin Nabavi, head of trading with MKS (Switzerland) SA, said that he expects gold prices to trade nervously between support at $1,485 and resistance at $1,520; however, he added that sentiment is still more bullish and he likes buying dips rather than selling rallies.

"Financial market uncertainty around the world is not going away anytime soon and because of that more investors are looking for gold to break on the upside," he said.

Lukman Otunuga, senior research analyst at FXTM, said that he sees the path of least resistance is higher.

"As long as concerns over slowing global growth, political risk, trade uncertainty and Brexit drama among many other geopolitical risk factors stimulate risk aversion, Gold bulls will remain in the driving seat," he said.

But not all analysts are optimistic on gold, Sean Lusk, co-director of commercial hedging at Walsh trading, said that he sees gold prices pushing lower as the $1,520 level is proving to be a strong resistance barrier.

He added that he doesn't see a lot of new information coming into the marketplace that will drive prices higher.

"I think right now there are way too many longs in the marketplace and I think we could see those investors start to leave if the market can't make new highs," he said. "We really need new information to push this market higher but I don't see where that will come from."

Richard Baker, editor of the Eureka Miner Report, also said that it looks like gold needs some fresh information as he sees prices trading back around $1,500.

"Gold appears to be pausing to assess its next direction, looking at an economic outlook that is not so dire as August, but with more impetus for Federal Reserve rate cuts given weakness in key areas," he said. "I believe Comex gold will retreat to the key $1,500-level this week but avoid a retest of Tuesday's low (7/10). Any adverse change in this fragile political and geo-political environment could quickly return safe-haven demand and reignite a gold rally."

Source: Kitco News

RELATED NEWS
Less than 50% of Main Street optimistic on gold prices rally; Wall Street outright bearish...
Monday, 11 November 2019 17:10 WIB

Gold is not ending the last week on a strong note and there is not much conviction among Wall Street analysts and Main Street investors that the selling pressure will end this week, according to the l...

What happens to the gold price when Fed cuts rates this week?...
Monday, 28 October 2019 11:28 WIB

With the Federal Reserve rate cut already priced in for this week, what will actually happen to the gold price once the central bank cuts for the third time this year? Analysts sounded positive as go...

Gold Prices Gridlocked, Bears Take Wheel...
Monday, 21 October 2019 13:10 WIB

Although Wall Street bears have an advantage, ultimately, gridlock in the gold market means prices are not going anywhere fast, according to the latest results from the Kitco News Weekly Gold Survey. ...

Gold prices to return to $1,500 levels soon - analysts...
Monday, 14 October 2019 11:29 WIB

Even though gold was getting beaten up last Friday, analysts were still optimistic that the precious metal was going to return to its key $1,500 level soon. Gold fell more than 1% on Friday (10/11/19...

Wall Street neutral on gold price, Main Street optimism hits 3-month low...
Monday, 30 September 2019 15:22 WIB

The sidelines in the gold market are getting a little crowded with Wall Street analysts projecting range-bound trading despite rising volatility in the near-term. Meanwhile, Main Street investors rem...

LATEST NEWS
Hong Kong Stocks Close Flat, Ending Tough Week (Review)

Hong Kong shares finished barely moved Friday, bringing an end to a tumultuous week that has seen the city crippled by violent protests, which show no sign of abating. The Hang Seng Index inched up 2.97 points to 26,326.66. The benchmark Shanghai...

Trade Hopes Propel Wall Street to Records; Healthcare Climbs

Wall Street's main stock indexes closed at record levels on Friday, fueled by fresh optimism over a potential calming of U.S.-China trade tensions and by big gains in shares of healthcare companies. The Dow Jones Industrial Average rose 221.71...

Oil gains 1.7%, shrugging off rising supply concerns

Oil futures gained nearly 2% on Friday as comments from a top U.S. official raised optimism for a U.S.-China trade deal, but worries about increasing crude supplies capped prices. Benchmark Brent crude gained $1.03, or 1.7%, to settle at $63.31 a...

POPULAR NEWS
Gold Tallies Back-To-Back Gains as Treasury Yields Retreat
Friday, 15 November 2019 02:06 WIB

Gold futures settled higher on Thursday, building on gains from a day earlier as weakness in U.S. benchmark stock indexes and a drop in yields on...

Gold Pares Weekly Gain After Kudlow's Comments on Deal
Friday, 15 November 2019 09:31 WIB

Gold declined, trimming its fourth weekly gain in five, after White House economic adviser Larry Kudlow signaled progress on a trade deal with...

Gold Claws Back Ground as Treasury Yields Retreat
Thursday, 14 November 2019 21:02 WIB

Gold futures were modestly higher Thursday, finding support as yields on government debt continue to fall, lowering the opportunity cost of holding...

Gold Rises Amid Growth Worries, Trade Uncertainty
Thursday, 14 November 2019 17:34 WIB

Gold advanced for a third day as investors turned back to havens amid gloomy economic data out of Asia and...