Wall Street, Main Street See Higher Gold Prices Next WeekBy Neils Christensen
Friday May 29, 2015 12:51
(Kitco News) - Although gold appears to be ending its second consecutive week in negative territory, both Main Street and Wall Street are expecting to see higher prices as a new month of trading kicks off.
However, according to the results of the Kitco Weekly Wall Street vs Main Street Gold Survey, market professionals have a stronger upward bias. This week, out of 33 market experts contacted, 20 responded; of those, 13 participants, or 65%, see higher prices, three experts, or 15%, see lower prices and four, or 20%, are neutral on the gold market. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.
The results of the online survey showed a slightly narrower vote. In total 515 people voted; of those, 230 participants, or 45%, expect to see higher gold prices next week, 186 people, or 37%, expect to see lower prices and 96, or 19%, are neutral.
Looking at the results of the previous week, Main Street once again has come out on top as the online survey correctly predicted that prices would be lower. In the previous survey 46% were bearish on gold, while most market professionals expected to see higher prices. Main Street has correctly predicted gold’s short-term price action four out of the last six weeks.
Although most Kitco readers appear bullish on gold price next week, some aren’t convinced. Yash, from India, said that he is negative on gold prices as the risk of Greece defaulting on its debt payments falls and on improving U.S. economic data.
“Unless we get lots of bad data from the U.S., gold cannot go up,” he said. “Next payroll data will be most important for the gold market.”
Turning to Wall Street, most analyst were bullish on gold because it has managed to hold near-term resistance, despite a stronger U.S. dollar.
Ken Morrison, editor of Morrison on the Markets, Ralph Preston of Heritage West Financial, and Colin Cieszynski from CMC Markets, said in their survey responses that gold’s ability to hold support is positive in the short-term.
“As of this moment it does not appear as if we will be breaking through 1170 to the down side anytime soon,” said Preston.
“Gold has stabilized just below the middle of its $1,170 to $1,230 channel trading just below $1,200 and has started to bounce back,” added Cieszynski. “Weak PMI or employment numbers out of the U.S. could knock [the U.S. dollar] down and boost gold.”
Other analysts said they are also expecting a short-term correction in the U.S. dollar should help boost gold prices higher next week.