EDITOR'S NOTE: Kitco News is turning five; to celebrate, all this week, we are featuring articles that look back at the gold market, showcasing the changes we've seen during the last five years. Click here to see our full coverage.

Main Street Bearish On Gold Next Week, Wall Street Undecided

(Kitco News) - After gold prices hit a five-week low Friday, a clear majority of Kitco readers expect to see more weakness next week, while market experts are split down the middle.

This week in Wall Street vs. Main Street, 514 people participated in the online Kitco gold survey. Of those, 263, or 51%, are bearish on the gold market next week; 153 readers, 30%, are bullish on gold prices and 98 people, or 19% are neutral.

It was a considerably closer race among Kitco’s market professionals; out of 32 market professionals surveyed, 20 responded this week. According to the results, 8 analysts, or 40%, are neutral on prices next week; 6 participants, or 30%, see prices moving higher and 30% see prices moving lower. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

Although the majority of Kitco visitors are bearish on gold, there were some who are still expecting to see prices bounce off recent lows. Peter Degraaf, commentator for Kitco.com, voted in the online survey,  and said that he is bullish on the yellow metal next week.

He said historically there is strong demand for bullion in April and May, which should help support prices. He said that a weaker U.S. dollar and positive positioning data from the Commodity Futures Trading Commission should help gold prices in the near-term.

“The US dollar is showing signs of weakness, after a rally that has lasted 9 months,” he said. “Analyzing the commercial gold traders’ data from the COMEX, we find that price has room to rise for the next two to four weeks.”

However, for some market experts the fact that gold has ignored a weaker U.S. dollar this week is not good for prices.

“Although Gold remained range-bound the past week, that it couldn't rally as the dollar weakened indicates the inverse relationship is breaking down,” said Ken Morrison, online newsletter Morrison on the Markets. “The path of least resistance appears lower in the near-term…”

Jessica Fung, commodity analyst at BMO Capital Markets said that she is neutral on gold prices in the coming week but added there is a bearish bias in the marketplace. She added that she had a chance to speak to a variety of clients earlier this week and most are neutral on gold sitting on the sidelines.

“Right now it is all about the Federal Reserve,” she said. “Everyone is waiting to see where interest rates are heading. Nobody wants to buy gold so that might lead to lower prices.”


Related Stories:

Kitco Gold Survey

Wall Street

Bullish
Bearish
Neutral

VS

Main Street

Bullish
Bearish
Neutral

By Neils Christensen of Kitco News nchristensen@kitco.com

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
kitco news

Precious Metal Charts

Click to see this Precious Metal chart
  1. 24h
  2. 30D
  3. 60D
  4. 6M
  5. 1Y
 

Interactive Chart