Wednesday, 15 July 2020
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--

Wall St., Main St. Look for Gold to Regain its Luster
Monday, 25 May 2020 14:32 WIB | GOLD CORNER |Gold OutlookGold Corner

Wall Street and Main Street look for gold prices to rise this week, according to the weekly Kitco News gold survey.

Traders and analysts who make up the Wall Street poll continued to cite the mass liquidity being dumped into the global economy to offset damage from the COVID-19 pandemic. Also, they pointed to rising U.S.-China tensions that were helping gold pare some of last week™s losses on Friday.

The Trump administration was already taking China to task over the pandemic, which hit China first. Then came news on Friday that Beijing has proposed imposing national security laws on Hong Kong, which could mean mainland intelligence agencies start operating there.

"Not only do you have low interest rates and economic stimulus supporting gold, you also have increasing tensions between the U.S. and China that will keep [gold] on its quest for all-time high prices," said Phil Flynn, senior market analyst with at Price Futures Group.

Ten out of 17 Wall Street voters, or 59%, said they are bullish for this week. There were five voters, or 29%, calling for lower prices. Two respondents, or 12%, were neutral.

Meanwhile, 1,809 votes were cast in an online Main Street poll. A total of 1,038 voters, or 57%, looked for gold to rise in the this week. Another 467, or 26%, said lower, while 304, or 17%, were neutral.

Gold bounced on Friday after a sell-off on Thursday. Sean Lusk, co-director of commercial hedging with Walsh Trading, said he looks for market participants to continue buying on price dips. As the week wound down, he was one of several market watchers who commented that the metal was being underpinned by renewed U.S.-China tensions.

"I just feel the level of uncertainty right now is greater, Lusk said.

Richard Baker, editor of the Eureka Miner's Report, also called for gold to rise, adding that industrial metal copper could come under pressure due to the U.S.-China situation.

"President Trump has decided to attack China for its lack of COVID-19 transparency as part of his re-election bid," Baker said. "This will likely reignite trade tensions between the world's two largest economies. Adding to China's woes are rekindled tensions in Hong Kong, a domestic economy damaged by the virus, and concerns about the global environment. All of this uncertainty is a boost for safe-haven gold and a growing headwind for the red metal [copper]."

Bob Haberkorn, senior commodities broker with RJO Futures, also looks for the precious metal to be stronger. The economy is gradually reopening after COVID-19 lockdowns, generating optimism about future economic growth, he said. Nevertheless, governments and central banks around the world have pumped massive sums of money into the economy, which observers for some time have characterized as bullish for gold.

"The medicine we threw at the economy “ all of this cash to confront the concerns of the shutdowns because of the pandemic “ are going to come back to benefit silver and gold," Haberkorn said. "Trillions of dollars have been created out of thin air between the European Union, U.S. Fed and other central banks. Interest rates are at or below zero at most places right now. It's a ripe environment for gold to go higher, and I think that will continue this week."

Charlie Nedoss, senior market strategist with LaSalle Futures Group, looks for gold to move higher after the market was able to hold above support at the 10- and 20-day moving averages last week. "I'm still very friendly toward gold," he said.

Meanwhile, Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, suggested gold prices could ease this week before eventually rising again.

"As the U.S. economy opens, there will initially be optimism in the stock market, perhaps provoking an overdue pullback for gold," Day said. "So this week down. But we remain fundamentally extremely bullish on gold because of the so-called 'policy' being pursued by the world™s leading central banks."

Colin Cieszynski, chief market strategist at SIA Wealth Management, described himself as neutral for thist week, commenting that gold "is still digesting recent gains."

Adam Button, managing director of ForexLive, also said neutral.

"This is the gut-check moment in the gold market," he said. "Everything is in place for the big breakout [on] the fundamental side, but the market is worried about sovereign and central-bank selling, or lack of buying. Ultimately, the path is much higher but in the short term the trade is to wait for a close above $1,750 to buy, so I™m neutral."

Source: Kitco News

RELATED NEWS
'Record-Highs in Sight': Gold on Path North of $1,800 This Week - Analysts...
Monday, 13 July 2020 15:47 WIB

Gold is rallying for the fifth week in a row and the bullish trend is targeting the 2011 record-highs in USD-terms, according to analysts. At the time of writing, gold was holding on above $1,800 an ...

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, ret...

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 r...

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 contra...

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 go...

LATEST NEWS
Hong Kong stocks finish morning with losses

Hong Kong stocks went into the break with more losses Wednesday on concerns about the city's future after Donald Trump removed its special trading status, while it also struggles with a new spike in virus cases. The Hang Seng Index fell 0.55...

Trump Administration Rescinds Rule on Foreign Students

Facing eight federal lawsuits and opposition from hundreds of universities, the Trump administration on Tuesday rescinded a rule that would have required international students to transfer or leave the country if their schools held classes entirely...

Hong Kong stocks open sharply higher

Hong Kong shares started Wednesday morning with big gains on fresh hopes for a virus vaccine, which offset news that Donald Trump had removed the city's special trade privileges as expected. The Hang Seng Index rose 1.61 percent, or 410.89 points,...

POPULAR NEWS
'Record-Highs in Sight': Gold on Path North of $1,800 This Week - Analysts
Monday, 13 July 2020 15:47 WIB

Gold is rallying for the fifth week in a row and the bullish trend is targeting the 2011 record-highs in USD-terms, according to analysts. At the...

Gold Futures Post Their First Gain in 3 Sessions
Tuesday, 14 July 2020 00:51 WIB

Gold futures climbed on Monday to score their first gain in three sessions, moving back toward the nearly nine-year high they reached on...

Gold Trades Steady as Virus, Equities’ Advance Weighed
Monday, 13 July 2020 08:25 WIB

Spot gold was steady in Asian trading as investors weigh virus developments in the U.S amid expectations Asian equities will open higher on...

Gold Steadies Amid U.S.-China Tensions, WHO's Warning
Tuesday, 14 July 2020 09:31 WIB

Spot gold was steady as investors weighed fresh tensions between the U.S. and China, this time over territorial claims, and the economic damage...