Sentiment in the gold market is starting to become a little muddled as the price remains trapped in a consolidation pattern, according to the latest Kitco News Weekly Gold survey.
Retail investors remain significantly bullish on gold in the near-term; however, sentiment has shifted among Wall Street analysts. After taking a week off, gold bears were the biggest voting bloc in the latest results.
However, although near-term sentiment has shifted in the gold space, many analysts see lower prices as buying opportunities.
“The fundamental moorings in the gold market remain strong,” said Chris Vecchio, senior currency strategist at DailyFX.com.
“I want gold prices to push lower so I can jump in and buy more,” said Bill Baruch, president of Blue Line Futures.
Looking ahead to next week, many analysts have said that they are expecting to see lower prices because of the U.S. dollar.
“Right now U.S. dollar short positions are the most crowded trade in the market. It is not going to take much to squeeze those positions higher,” said George Gero, managing director of RBC Wealth Management.
However, Gero added that he remains bullish on gold in the near-term as growing market uncertainty could push the precious metal and the U.S. dollar in tandem.
Eugen Weinberg, head of commodity research at Commerzbank, said that he is neutral on gold in the near-term. He added that although the U.S. dollar is a threat in the near-term, it won’t be enough for gold to break through current support levels.
“This market has a lot to digest,” he said. “This consolidation period could last for a much longer time without impacting the overall longer-term trend. Currently, I don’t really see anything on the horizon that will push gold prices back above $2,000. But I also don’t see anything that will really below it below $1,900.”
Reference: Kitco
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