Wall Street And Main Street Are Bullish Next Week
(Kitco News) - Fifteen market professionals took part in the Wall Street survey. Nine respondents, or 60%, predicted higher prices by next Friday. There were three votes, or 20%, for both lower and sideways prices.
Meanwhile, 502 people responded to an online Main Street poll. A total of 311 respondents, or 60%, called for gold to rise. Another 123, or 26%, predicted gold would fall. The remaining 68 voters, or 14%, see a sideways market.
For the trading week now winding down, 60% of Wall Street was bearish, while 48% of Main Street voters were bullish. Around 11:05 a.m. EDT, Comex December gold was 1.1% higher for the week so far at $1,221.40 an ounce.
“I am bullish and looking for $1,250-ish,” said Afshin Nabavi, head of trading at trading house MKS (Switzerland) SA.
Sean Lusk, director of commercial hedging with Walsh Trading, also sees more gains, suggesting some short covering and bargain hunting may be occurring, especially with gyrations in the stock market and uneasiness with European politics.
“We’re getting a good bounce here,” Lusk said. “We are seeing more flows coming into … safe havens despite a [U.S.] dollar that is heavily bid.”
Further, Lusk pointed out that market psychology is shifting toward an expectation that the U.S.-China trade dispute eventually will be resolved. A resolution should help gold since the standoff previously boosted the U.S. dollar and weighed down gold as a result.
Adam Button, managing director of ForexLive, also said higher, commenting that “persistent uncertainty in broader markets is adding to gold's attraction.”
George Gero, managing director with RBC Wealth Management, sees gains on short covering.
Adrian Day, chairman and chief executive officer of Adrian Day Asset Management
also sees more upside ahead for gold.
“The growing tension in the U.S., which the incoming House Democratic majority—seeming intent on devoting their time to investigating President Trump--as well as the increasingly uncertain future of so-called Brexit deal and potential disruption to the EU [European Union], supports gold, even if the latter also boosts the dollar,” Day said.
Meanwhile, Mark Leibovit, editor of the VR Gold Letter, is bearish, commenting that “we are going to break under $1,172 before year end.”
Bob Haberkorn, senior commodities broker with RJO Futures, looks for traders to sell into price upticks until the U.S. Federal Open Market Committee changes its tune and is no longer hawkish. The markets are expecting another Fed rate hike next month.
“I think gold traders have to be on the defensive and sell rallies,” Haberkorn said.