Home / Metal News / Aluminium / Wall Street, Main Street Decisively Bearish On Gold Next Week
Wall Street, Main Street Decisively Bearish On Gold Next Week
Jun 15,2015 18:32CST
industry news
Source:SMM
For the second consecutive week, investors and market professionals see lower gold prices next week and the outlook is very decisive.

Author: Paul Ploumis15 Jun 2015 Last updated at 06:07:23 GMT

(Kitco News) - For the second consecutive week, investors and market professionals see lower gold prices next week and the outlook is very decisive.

The gold market appears to be ending its three-week losing streak as prices have managed to trend mostly higher after bottoming out last week; however, despite some momentum early in the week, prices were unable to push above $1,200 an ounce, which appears to be reacting to some negative sentiment in the marketplace.

The results of Kitco News’ Wall Street vs Main Street Weekly Gold Survey, show that a strong majority expect to see lower prices next week. In Kitco’s online survey, 421 people voted and of those 297, or 71%, said they were bearish on gold in the short-term; 75 participants, or 18%, were bullish and 49 people, or 12%, were neutral.

The results of the professional survey were also fairly conclusive. Out of 34 market experts contacted, 20 responded; of those, 12 participants, or 47%, see lower prices, five experts, or 25%, see higher prices and three, or 15%, are neutral on the gold market. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

According to the comments from market professions the biggest risk to the gold market is the Federal Open Market Committee (FOMC) meeting, which kicks off Tuesday with the central bank’s monetary policy statement and updated economic forecasts to be released Wednesday.

“The Fed will reassert a hawkish outlook and may even put a July hike on the table, weighing heavily on gold and boosting the U.S. dollar,” said Adam Button, currency analyst at Forexlive.com

However, the one positive in the marketplace remains the uncertain geopolitical situation in Europe as Greece is still unable to secure a new funding deal among its European creditors. Talks hit a major snag Thursday when the negotiating team from the International Monetary Fund walked away from the negotiations.

Adrian Day, president of Adrian Day Asset Management said because of the economic uncertainty, gold’s recent drop is overdone.

“Everyone expects the Europeans to extend and pretend, but the risk of a sudden shock still exists, so gold has more unexpected upside than downside in the near term,” he said.

Jeffrey Nichols, managing director of American Precious Metals Advisors and senior economic advisor for Rosland Capital, is neutral on the gold market and expects prices to continue to swing back and forth between within it current trading range.

“The market has lost momentum in all direction,” he said.

Courtesy: Kitco News
 

gold
gold price

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

    timeApr 28, 2020 14:49timezoneCST
    timeApr 28, 2020 21:34timezoneCST
    timeApr 28, 2020 19:42timezoneCST
    timeApr 28, 2020 19:34timezoneCST
    timeApr 28, 2020 18:54timezoneCST
    timeApr 28, 2020 18:13timezoneCST
    timeApr 28, 2020 17:54timezoneCST
    timeApr 28, 2020 18:24timezoneCST
    timeApr 28, 2020 16:51timezoneCST
    timeApr 28, 2020 16:38timezoneCST