MAIN STREET, WALL STREET BULLISH ON GOLD, BAD TRADE HEADLINES.
Allen Sykora Friday August 31, 2018 11:36
(Kitco News) – Wall Street and Main Street both look for gold prices to rally in the week after traders return to work from the long U.S. Labor Day weekend, based on the weekly Kitco News gold survey.
Eighteen market professionals took part in the Wall Street survey. Nine respondents, or 50%, called for higher prices, while four, or 22%, said lower. Five respondents, or 28%, predicted a sideways market.
Meanwhile, 608 people responded to an online poll. A total of 289 respondents, or 48%, called for gold to rise. Another 222, or 37%, predicted gold would fall. The remaining 97, or 16%, see a sideways market.
Wall Street
Bullish 50%
Bearish 22%
Neutral28%
VS
Main Street
Bullish 48%
Bearish 37%
Neutral16%
For the trading week now winding down, 53% of Wall Street voters and 45% of Main Street respondents were bullish. Around 11 a.m. EDT, Comex December gold was down 0.4% for the week so far to $1,208.90 an ounce.
Phil Flynn, senior market analyst with at Price Futures Group, looks for gold to trade higher since “we are closer to a trade deal and the new Trump sanction threats should bring China to the table.” Otherwise, the trade spat has tended to underpin the U.S. dollar in recent weeks, which in turn has hurt gold.
However, Adam Button, managing director of ForexLive, sees the trade issue helping gold for a different reason. “There are significant risks brewing in the U.S.-China trade war and that could spark a relief rally in gold on a flight to safety,” Button said.
Mark Leibovit, editor of the VR Gold Letter, said he is bullish by giving gold “the upside benefit of the doubt ‘ citing dangerous trade war headlines.
Charlie Nedoss, senior market strategist with LaSalle Futures Group, sees upside potential since the 10-day moving average has crossed just above the 20-day average of $1,205.50 an ounce.
Posted by Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com
