Thursday, 21 November 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--

Wall St. Leans Neutral/Sideways On Gold Prices, Main St. Bullish
Monday, 15 July 2019 13:42 WIB | GOLD CORNER |Gold OutlookGold Corner

Wall Street traders and analysts are undecided or else look for gold prices to be sideways this week, while Main Street remained bullish, according to the weekly Kitco News gold survey.

The largest block of Wall Street voters were in the neutral/sideways camp, while the rest were nearly evenly split between bulls and bears. This was the first time Wall Street was not bullish since May 10, when the professionals were also neutral.

Sixteen market professionals took part in the Wall Street survey. A total of seven voters, or 44%, called for gold to be either sideways or are neutral. There were five votes, or 31%, for higher, while four respondents, or 25%, look for the metal to fall.

Meanwhile, a one-year high of 961 respondents took part in an online Main Street poll. A total of 653 voters, or 67%, called for gold to rise. Another 175, or 18%, predicted gold would fall. The remaining 133 voters, or 14%, saw a sideways market.

In the last survey, Main Street and Wall Street voters alike were bullish. Just before 11 a.m. EDT, last Friday, Comex August gold futures were trading $8.40 higher for the week so far at $1,408.50 an ounce.

Wall Street has a 14-12 winning record for the year, meaning respondents have been right 54% of the time. Main Street is 13-13 for 50%.

Gold prices rebounded last week, after Federal Reserve Chair Jerome Powell remained dovish during his congressional testimony, despite a 224,000 increase in nonfarm payrolls reported in the previous week.

"I expect higher this week on a continuation and follow-through of this past week after the Fed talk," said Bob Haberkorn, senior commodities broker with RJO Futures. The Fed is expected to cut rates, which benefits the yellow metal, he continued.

"Gold has that feel where traders and investors are not waiting to buy dips," he continued. "They™re jumping into it. When you get into that mode, you can go higher."

George Gero, managing director with RBC Wealth Management, said he looks for gold to be "up moderately" this week, now that the market worries about any Federal Reserve hawkishness have been put to rest.

"After Powell's testimony, it's clear that gold will benefit from a more dovish Fed," said Phil Flynn, senior market analyst with at Price Futures Group. "On top of that, geopolitical tensions with Iran and the U.S.-China trade war worries will give gold bulls an edge."

Jim Wyckoff, senior technical analyst with Kitco, sees gold steady to higher since the picture on the charts remains bullish.

Meanwhile, Kevin Grady, president of Phoenix Futures and Options LLC, said he is bearish for this week. "I am looking for a retracement to the July 1st low of $1,384.70," he said.

Ole Hansen, head of commodity strategy at Saxo Bank, said that is he slightly bearish on gold in the near term as the summer doldrums could reduce momentum in the marketplace. He added that investors could also start to take some profits, as it appears a July Fed rate cut is already baked into market expectations, with limited scope of more aggressive action.

However, Hansen added that there is still a lot of global uncertainty, so he expects selling pressure to be limited. "If I'm selling, it's not to sell short; but I™m selling to reduce my exposure to neutral.

John Weyer, co-director of commercial hedging Walsh Trading, also figures gold is due for a pullback.

"It moved higher on concerns about interest rates and risk on-risk off," he said. "These concerns have subsided a little bit."

Afshin Nabavi, head of trading with MKS, said he sees gold range-bound, although he prefers to trade it from the long side. "So I guess you could say bullish," he said.

"After an impressive move higher early Thursday, gold has given back much of the gain disappointing investors; a close back above $1,410 might be seen as positive to help reinvigorate enthusiasm for the market. For now, I'd look for initial support at the psychological $1,400 level and resistance around $1,422."

Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, said he doesn't see gold moving much in the this week, although he™s constructive on the metal for the longer term.

"Gold is almost priced for perfection now, so any disappointment on expectations, or easing of various geopolitical tensions, could see gold correct," Day said. "For this week, we'll say unchanged¦.However, most importantly, the sentiment has changed, and gold can now respond to positive developments. So whatever happens in the next week or two, gold is set to be meaningfully higher over the next six and 12 months."

Colin Cieszynski, chief market strategist at SIA Wealth Management, said he is neutral on gold for the this week.

"I think all of the monetary news is out for the time being and focus is going to shift toward corporate earnings as results start coming out on this Monday," he said.

Source: Kitco News

RELATED NEWS
Unique split on Wall Street to keep investors guessing the gold price this week...
Monday, 18 November 2019 11:02 WIB

This week will be an interesting one for gold with Wall Street uniquely split between expectations of higher and neutral gold prices, while Main Street is still very bullish, according to the latest K...

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...

LATEST NEWS
U.S. stock futures pare losses after report China's Liu 'cautiously optimistic' over trade deal

Stock futures slipped Thursday, but pared larger losses after China's vice premier, Liu He, reportedly said he™s œcautiously optimistic about getting to a preliminary phase 1 trade pact with the U.S. Dow Jones Industrial Average futures...

Japan's yen gains, yuan down on trade woes, Hong Kong strife

The Japanese yen firmed against the dollar on Thursday after sources close to the White House told Reuters that a U.S.-China trade deal is unlikely this year, shattering investor hopes of a partial agreement soon and boosting safe-haven...

Gold Steadies as China 'Cautiously Optimistic' on Deal

Gold erased gains to trade little changed after China™s chief negotiator Liu He said he was œcautiously optimistic about reaching a phase one trade deal with the U.S. Spot gold little changed at $1,471.02/oz at 7:33am in...

POPULAR NEWS
Gold Edges Up On Chinese Worry Over Trump Impeachment
Tuesday, 19 November 2019 03:44 WIB

Gold was back on track to being a hedge to the trade war on Monday after talk of Beijing™s anxiety over President Donald Trump™s impeachment...

Gold Holds Steady As Trump Warns China on Trade Deal
Wednesday, 20 November 2019 03:42 WIB

President Donald Trump is warning China to sign on the dotted line by Dec. 15 and the gold market is listening more than ever. As hedge to the...

Gold Prices Settle Slightly Lower, Then Extend Losses After Fed Meeting Minutes
Thursday, 21 November 2019 02:24 WIB

Gold prices gave up the bulk of their losses on Wednesday to finish just a dime lower, finding support after Reuters reported that phase one of a...

Gold Holds Gain on Trade Doubts, Powell-Trump Meeting
Tuesday, 19 November 2019 09:27 WIB

Gold held an advance as investors continued to await signs of progress in U.S.-China trade negotiations amid lingering doubts that a...