Wall Street and Main Street look for gold prices to rise next week, according to the weekly Kitco News gold survey.
Traders and analysts who make up the Wall Street poll continued to cite the mass liquidity being dumped into the global economy to offset damage from the COVID-19 pandemic. Also, they pointed to rising U.S.-China tensions that were helping gold pare some of this week’s losses on Friday.
“Not only do you have low interest rates and economic stimulus supporting gold, you also have increasing tensions between the U.S. and China that will keep [gold] on its quest for all-time high prices,” said Phil Flynn, senior market analyst with at Price Futures Group.
Richard Baker, editor of the Eureka Miner’s Report, also called for gold to rise, adding that industrial metal copper could come under pressure due to the U.S.-China situation.
Bob Haberkorn, senior commodities broker with RJO Futures, also looks for the precious metal to be stronger. The economy is gradually reopening after COVID-19 lockdowns, generating optimism about future economic growth, he said. Nevertheless, governments and central banks around the world have pumped massive sums of money into the economy, which observers for some time have characterized as bullish for gold.
Charlie Nedoss, senior market strategist with LaSalle Futures Group, looks for gold to move higher after the market was able to hold above support at the 10- and 20-day moving averages this week. “I’m still very friendly toward gold,” he said.
Meanwhile, Adrian Day, chairman and chief executive officer of Adrian Day Asset Management, suggested gold prices could ease next week before eventually rising again.
“As the U.S. economy opens, there will initially be optimism in the stock market, perhaps provoking an overdue pullback for gold,” Day said. “So next week down. But we remain fundamentally extremely bullish on gold because of the so-called ‘policy’ being pursued by the world’s leading central banks.”
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