Wall Street and Main Street are certainly on the same page as they look for gold to tick higher next week, based on the weekly Kitco News gold survey.
The percentages for voting in both the Wall Street and online Main Street polls were identical, when rounded off to the nearest whole number.
The metal early this week hit a one-month high on safe-haven buying when equities tumbled. However, gold gave up those gains later in the week as traders exited fresh bullish trades and stocks recovered.
Eighteen market professionals took part in the Wall Street survey. A total of nine voters, or 50%, called for gold to rise. Another six, or 33%, predicted gold would fall. The remaining three voters, or 17%, saw a sideways market or else were neutral.
Meanwhile, 332 respondents took part in an online Main Street poll. A total of 167 voters, or 50%, called for gold to rise. Another 110, or 33%, predicted gold would fall. The remaining 55 voters, or 17%, saw a sideways market.
In the last survey, Main Street was bullish while Wall Street was split between neutral and bullish. As of 11:05 a.m. EDT, Comex June gold futures were trading down 0.8% for the week so far at $1,276.90 an ounce.
Afshin Nabavi, head of trading with MKS, said he is "cautiously bullish" on gold's fortunes for next week.
"Despite the overnight news of China pulling back on trade talks with the U.S., gold cannot seem to find much in the way of support," Nabavi said. "Broadly speaking, we seem to be in a range between $1,267 and $1,309. Personally speaking, I cannot be short [bearish] with all the geopolitical tension in the Middle East and trade talks."
Alex Turro, market strategist with RJO Futures, figures gold could dip some more in the short term but still favors the long side of the market, looking for an eventual upside breakout. "I see the dollar in a topping process," he said.
Jasper Lawler, head of research at London Capital Group, said that he is slightly positive on gold since it has held up really well in the face of a recovery in equity markets and relative strength in the U.S. dollar. Although gold was unable to hold critical physiological support at $1,300, the yellow metal was showing some resilience by holding above support around $1,280, as of when Lawler spoke, before dipping below.
Adam Button, managing director of ForexLive, also said higher.
"I expect concerns about a U.S.-China trade war to intensify and markets to begin to price in slower global growth," Button said.
Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, also looks for near-term price weakness.
"A stock-market recovery will hurt gold, while any kind of movement towards a trade deal with China will boost the dollar and also hurt gold," Day said. "So in the near term, there is a possibility of further declines. However, we would not be selling.
Reference: Kitco
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