Seventeen market professionals took part in the Wall Street survey. Twelve participants, or 71%, described themselves as bullish for the week ahead. There were four voters, or 24%, who see sideways prices, while just one respondent, or 6%, called for a retreat.
Meanwhile, 572 respondents took part in an online Main Street poll. A total of 387 voters, or 68%, called for gold to rise. Another 127, or 22%, predicted gold would fall. The remaining 58 voters, or 10%, saw a sideways market.
“I am bullish on gold for next week,” said Colin Cieszynski, chief market strategist at SIA Wealth Management. “I think today marks a turning point where the Street has finally woken up to the growing Brexit risks out there and capital has started to move back into safe havens like gold for the short term.”
David Madden, market analyst at CMC Markets, also said that he is bullish on gold but doesn’t expect a significant upside breakout anytime soon. A dovish Fed supports higher gold prices, but the U.S. dollar will remain relatively strong as other central banks are even more dovish, he explained.
“If the Federal Reserve has downgraded its growth forecasts for the year, how worried does the ECB [European Central Bank] have to be?” Madden asked rhetorically. “You need to keep your cash in some currency, and I think the U.S. dollar will remain the attractive option. I think gold will remain in its uptrend, but rallies will be capped because of the U.S. dollar.”
Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, also looks for gold to rise some more.
“Reinforcement of Federal Reserve and ECB’s backing away from monetary tightening is very supportive of gold,” Day said.
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