Wall Street and Main Street are both heavily bullish on the near-term direction of gold prices, based on the Kitco News weekly gold survey.
The traders and analysts who take part in the Wall Street poll cite mostly technical-chart factors – in particular, gold’s ability to hold around the 200-day moving average and the psychologically important $1,300-an-ounce level during a recent price pullback. They also suggest the U.S. dollar’s recent strength may be waning.
Nineteen market professionals took part in the survey. Fifteen of the respondents, or 79%, called for gold prices to rise over the next week. There were two votes each, or 11%, calling for gold to fall or be sideways.
Added Jim Wyckoff, senior technical analyst with Kitco: “The $1,300 level has held to suggest a near-term market bottom is in place.”
Mark Leibovit, editor of the VR Gold Letter, looks for more of a rally in gold due to a likely pullback in the U.S. dollar. However, he added, the “dollar pullback may only be temporary, in my view.”
Phil Flynn, senior market analyst with at Price Futures Group, is also bullish on gold, commenting that the metal appears to have established a technical bottom after a “rough week,” with recent pressure prompted by U.S. dollar strength.
“It looks like we’ve turned the corner, perhaps because of geopolitical risks and inflation data that not as hot as people thought,” Flynn said. “It allows gold to go up because they [traders] as not as fearful of the Fed raising interest rates.”
Reference: Kitco
Read more: http://www.kitco.com/
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