Wall St., Main St. Look For Gold Prices To Tick Higher
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(Kitco News) - The biggest voting blocs on Wall Street and Main Street look for gold prices to rise over the next week, according to the weekly Kitco News gold survey.
Thirteen market professionals took part in the Wall Street survey. Seven participants, or 54%, described themselves as bullish for the week ahead. There were three voters each, or 23%, for both bearish and sideways.
Meanwhile, 534 respondents took part in an online Main Street poll. A total of 239 voters, or 45%, called for gold to rise. Another 191, or 36%, predicted gold would fall. The remaining 104 voters, or 19%, saw a sideways market.
In the last survey, Wall Street and Main Street were both bullish on gold for the current week. As of 11 a.m. EDT, Comex June gold futures were trading 0.2% lower for the week so far at $1,295.90 an ounce. So far in 2019, both Wall Street and Main Street are 7-5 in the weekly poll for a winning percentage of 58%.
“Gold should be up,” said Phil Flynn, senior market analyst with Price Futures Group. “We held key support this week and we expect that physical demand will pick up.”
He pointed out that core inflation remains “calm” and commented that the Federal Reserve probably won’t raise interest rates even with a strong U.S. employment number.
Daniel Pavilonis, senior commodities broker with RJO Futures, also looks for gold to bounce from support levels that held around this week’s lows.
“This [recent weakness] was a washout and an opportunity to start getting long [establish a bullish position] again,” Pavilonis said. “We’re positive now. If we have a strong close today, I think we’ll see a lot of follow-through next week.”
Afshin Nabavi, head of trading at trading house MKS (Switzerland) SA, also looks for gold to rise.
“With the geopolitical issues around the world, and the recent test of $1,280s ( yesterday), I can only remain bullish and look for a break above $1,295 and $1,300 level to push the price of the gold to the recent highs of $1,345,” Nabavi said.
Charlie Nedoss, senior market strategist with LaSalle Futures Group who correctly predicted that gold would slip two weeks in a row, looks for still another down week. He noted that data still show the economy doing OK.
“I’m still friendly to the dollar,” he said, later adding, “That, in turn, will weigh on gold.”
Technically, one key will be what June gold does around the 100-day moving average near $1,294.60, Nedoss said. The metal has been below it this week but was hovering nearly right on this as Nedoss spoke. If this fails, the strategist said he does not see “hard support” until the 200-day average of $1,266.50.
Jim Wyckoff, senior technical analyst with Kitco, looks for gold to be “steady and choppy as near-term technicals have turned neutral at best.”