Monday, 01 June 2020
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--

Wall Street, Main Street Sill Bullish On Gold, But Caution Creeping Higher
Monday, 12 August 2019 12:41 WIB | GOLD CORNER |Gold OutlookGold Corner

The market remains emphatically bullish on gold. But, looking past the headlines, the yellow metal is beginning to look overbought, according to some analysts.

The gold market is on track to see its biggest weekly gain in more than three years as prices trade near a fresh six-year high. Although economic and geopolitical uncertainty continues to dominate the marketplace, some analysts think the market could be close to a near-term top and is due for a consolidation.

However, sentiment remains clearly bullish as analysts are reluctant to outright short gold.

œYou can™t sell this market, said Darin Newsom, president of Darin Newsom Analysis Inc. œI don™t want to buy at this level because the market is sharply overbought, but I also won™t be the first person to sell.

Last week, 16 market professionals took part in the Wall Street survey. A total of 12 voters, or 75%, called for gold to be higher this week. Bearish and neutral votes were tied with each getting two votes or 13%.

Meanwhile, 910 respondents took part in Kitco™s online Main Street poll. Participation in this week™s survey is at its highest level in more than a year. A total of 599 voters, or 65%, called for gold to rise further. Another 187 participants, or 21%, predicted for gold to fall. The remaining 124 voters, or 14%, saw a sideways market.

In the last survey, Main Street and Wall Street were both significantly bullish on prices for the week now winding down. As of 12:05 pm last Friday, Comex August gold futures were trading $1,458.30 an ounce, up 2.7% for the week.

Gold prices surged higher after the China government let the yuan rise above 7 against the U.S. dollar for the first time in more than a decade, sparking fears that the U.S. “China trade war has evolved into a currency war.

Adrian Day, president of Adrian Day Asset Management, said that although a correction is overdue in the gold market, investor sentiment in the overall financial market has changed.

œAnd if you want to buy a little gold as a hedge on the rest of your portfolio, you tend to be less price sensitive. But all those small positions add up in a market as relatively small as the gold market.  So gold could well drive further upwards, he said.

Mark Leibovit, publisher of VR Metals/Resource Letter, said that he is bullish on gold as seasonal factors continue to support prices but he also warned that investors should be prepared for a correction.

Afshin Nabavi, head of trading with MKS (Switzerland) SA, said that it would be healthy to see a pullback in gold, but added that momentum continues to support higher prices in the near-term. He reiterated his call that because of the market™s momentum, any correction could be seen as a buying opportunity.

Along with Newsom, Colin Cieszynski, chief market strategist at SIA Wealth Management, was the second neutral vote in the latest survey. He said that although gold has room to move higher in the near-term, momentum indicators have slowed.

œGold has had a huge move in the last few months and it looks like it™s running into some resistance and looks like it wants to level off, he said. œI don™t think the rally is over but I think gold right now wants to pause and digest its recent gains.

Sean Lusk, co-director of commercial hedging at Walsh Trading, was one of the two bearish votes this week. He explained that gold™s momentum is starting to wane and it could prompt some traders to take some profits in gold.

However, he added that he would be reluctant to short the market in the current environment.

œThe market is hyper-sensitive and bullish sentiment could strengthen really quickly, he said. œI think traders should watch equity markets for near-term direction in gold.

Lusk said he would expect œback-and-fill trading to push gold to initial support at $1,495 to $1,480. However, he added that price could fall as low as $1,430 before gold bulls start to get a little nervous.

Source: Kitco News

RELATED NEWS
Wall St., Main St. Look for Gold to Regain its Luster...
Monday, 25 May 2020 14:32 WIB

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 li...

Wall St., Main St. Both Look For Gold Prices To Keep Shining...
Monday, 18 May 2020 11:17 WIB

Wall Street and Main Street alike remain bullish on gold prices for this week, according to the weekly Kitco News gold survey. Professional investors and traders cited the ongoing quantitative-easing...

Wall St., Main St. Look for Bounce in Gold Prices...
Monday, 4 May 2020 12:06 WIB

Wall Street and Main Street were both undeterred by last week™s pullback in gold, calling for the metal to rise this week, according to the weekly Kitco News gold survey. Wall Street is not as heav...

Harga emas siap untuk level $ 1.800: Pasar amati dua event minggu ini...
Monday, 27 April 2020 11:27 WIB

Strategi para pedagang emas tampaknya penurunan harga beli karena logam mulia bersiap-siap untuk menguji level tertinggi 2012, menurut analis. Lebih banyak data ekonomi yang buruk pekan lalu tampakny...

Gold-Price Sentiment Overwhelmingly Bullish...
Tuesday, 14 April 2020 08:27 WIB

Participants in the weekly Kitco gold-price survey look for the metal to maintain its upward momentum this week as central banks and governments keep rolling out measures to prop up an economy that is...

LATEST NEWS
Hong Kong stocks end week with more losses (Review)

Hong Kong stocks finished with more losses Friday as traders nervously await Donald Trump's news conference, in which he will set out the US response to China's plans to impose a security law on the financial hub. The Hang Seng Index fell 0.74...

Stocks Erase Early Losses to End Mixed as Trump Refrains From Tearing Up U.S.-China Trade Deal

Stocks reversed early losses to post a mixed finish Friday, capping a strong weekly and monthly performance, after President Donald Trump announced a series of measures aimed at punishing China over its treatment of Hong Kong but refrained from...

U.S. oil futures reverse course to finish higher, climb 88% for the month

U.S. oil futures reversed course to finish higher Friday, getting a boost as traders eye developments tied to Hong Kong related tensions between the U.S. and China, and as another drop in U.S. oil rigs suggested further domestic production...

POPULAR NEWS
Gold futures end higher, up more than 3% for the month
Saturday, 30 May 2020 01:21 WIB

Gold futures ended higher on Friday as tensions between the U.S. and China over Hong Kong fed haven demand for the precious metal. Meanwhile,...

Gold Rises Friday and Set for Weekly Gain as Investors Await President Trump Statement on China
Friday, 29 May 2020 19:45 WIB

Gold futures headed higher for a second session Friday, putting gold prices on track for a modest weekly gain amid focus on U.S.-China tensions and...

Hong Kong stocks end week with more losses
Friday, 29 May 2020 15:29 WIB

Hong Kong stocks finished with more losses Friday as traders nervously await Donald Trump's news conference, in which he will set out the US...

Gold up as markets cautiously await Trump's response on HK
Friday, 29 May 2020 17:26 WIB

Gold prices rose on Friday, supported by lingering U.S.-China trade tensions, while market participants cautiously awaited Washington's response to...