• Kitco Survey | Wall St. Bearish, Main St. Bullish On Gold Prices

    5 Mar 2019 | Gold News

Wall Street and Main Street are slightly split on where gold is headed next week, according to the weekly Kitco News gold survey.

The largest bloc of Wall Street voters called for lower prices, while Main Street remained bullish.

Mark Leibovit, editor of the VR Gold Letter, and Colin Cieszynski, chief market strategist at SIA Wealth Management, both look for gold to ease on seasonal factors. Cieszynski added that Relative Strength Index momentum also turned downward.

“The collapse of the U.S.-North Korea summit and other political tensions have done nothing for gold and with the U.S. dollar starting to pick up, the balance of risks for gold has shifted to the downside for the coming week,” Cieszynski said.

Neil Mellor, senior currency strategist at Bank of New York Mellon, said that he is bearish on gold, commenting that it is difficult to be bullish because of a stronger U.S. dollar and the fact that no matter where an investor looks, there are no inflation pressures growing within the global economy.

Meanwhile, Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, looks for political developments to boost gold prices.

“The failure of the Korea talks and the damaging Michael Cohen testimony in Congress can only be seen as dollar negative and gold positive,” Day said. “The congressional hearings are simply an initial volley in what promises to be a relentless onslaught on [President Donald] Trump, with impeachment as the ultimate goal. This would be very positive for gold.”

Daniel Pavilonis, senior commodities broker with RJO Futures, sees for a bounce from the late-week weakness.

“We backed off to a trendline,” he said. “I think we’ll start to see a move higher.”

Richard Baker, editor of the Eureka Miner Report, also looks for the metal to recover.

“Tides ebb and flow,” Baker said. “I continue to maintain that the yellow metal will break $1,380 before May Day. Geopolitical tensions -- including the Indo-Pakistani conflict, failed U.S.-North Korea Summit, Brexit deadline and U.S.-China trade negotiations -- create enough uncertainty to keep the safe-haven waters flowing.


Reference: Kitco

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