Author: Paul Ploumis04 May 2015 Last updated at 05:03:35 GMT
(Kitco News) - Main Street vs Wall Street gold survey shows almost mirror opposites as Kitco readers expect higher gold prices in the near term while market experts expect to see them lower.
Looking at the results of the online survey, 351 people voted; of those, 170 participants, or 48%, expect to see higher gold prices next week, 117 people, or 33%, expect to see lower prices and 64, or 18%, are neutral.
This week, out of 33 market experts contacted, 19 responded; of those, 9 participants, or 47%, see lower prices, 6 experts, or 32%, see higher prices and 4, or 21%, are neutral on the gold market. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.
Last week, the online survey proved correct as the majority, or 51%, of Kitco readers were bearish on gold prices. Since Wednesday, the gold market has retraced all of its earlier gains. Gold is preparing to end in negative territory for the fourth consecutive week as prices remain at near-term support levels around $1,170 an ounce.
Although the bears have the technical momentum, as it remains below the initial support area at $1,174 an ounce, some analysts see the latest selloff as overdone and are expecting prices to rally next week ahead of the April employment report.
Kitco’s Peter Hug said a deteriorating U.S. economy continues to support gold prices, which will force the Fed to stay on the sidelines for longer than expected.
“I suspect by the end of next week the markets may be somewhat higher than current levels because the economy is still not firing and equity values seem stretched,” he said.
Jeffrey Nichols, managing director of American Precious Metals Advisors and senior economic advisor at Rosland Capital LLC, said that gold remains vulnerable to further technical selling but bargain hunters have proven to jump in at current levels, helping to support prices.
He added that he expects prices to remain range bound between $1,175 an ounce and $1,225 an ounce.
Courtesy: Kitco News