Wall Street And Main Street Both See Higher Gold Prices Next Week

 

(Kitco News) - With the U.S. dollar looking “toppy” and gold close to ending the week above $1,200 an ounce most people in the new Kitco News Weekly Gold Survey agree that prices should move higher next week.

 

In Wall Street vs. Main Street, out of 31 market professionals surveyed, 22 responded this week. According to the results, 13 experts, or 59%, see prices moving higher, while three, or 14%, see  prices down and six, or 27%, see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

 

Turning to Main Street, 421 votes were collected in Kitco News’ online survey and the results were slightly closer compared to the market professionals. Of those who participated, 188 or 45%, are bullish on gold next week, 140, or 33% are bearish and 93 or 22% are neutral.

 

On the professional side, analysts said they expect the U.S. dollar to be the biggest factor in gold’s direction next week.

 

Adrian Day, president of Adrian Day Asset Management, said the market is starting to anticipate lower than expected interest rate for a longer period of time, which will be dollar negative and positive for gold.

 

“The dollar may have topped, so even though we are not expecting a sharp decline any time soon, we are unlikely to see higher dollar levels, and that will turn to the benefit of gold,” he said

 

However, Colin Cieszynski, senior market analyst at CMC Markets, said that he expects gold to remain directionless as sparse economic data won’t provide any clear indication of the U.S. economy

 

“Unless the Greece situation unravels and sparks capital flight, the focus is likely to be on earnings season which moves indices but not gold,” he said.

 

Kitco News also received some insightful comments from its online survey.

 

Rob M, from Orange County, CA wrote in an email to Kitco News that there remains a lot of uncertainty throughout the world, which is why he is neutral on gold. “The negatives push gold high, stability keeps it low. Since we don’t know the future, I voted neutral, at this point in time,” he said.

 

However, Paul L, from St. Mary’s, ON, Canada said in an email that he is bullish on gold, questioning the strength of the U.S. dollar and the U.S. economy.

 

“The U.S. economy is deep in debt and therefore the $US should not be worth what it is today.  It is not backed by gold or any other precious metal,” he said. “So what does the USA have that makes the $US so strong?  Really nothing other than the words of the Fed...  Gold should be moving upwards towards $5,000 per ounce instead of remaining restrained at around the $1,200 mark.”

 

Courtesy: Kitco News