(Kitco News) – Voters within the weekly Kitco Information gold survey stay bullish on the yellow metallic for subsequent week, with merchants and analysts citing ongoing worries concerning the financial fallout from the coronavirus that hit China, with a small variety of instances now making their technique to different international locations.
“I feel we’re going to see continued concern concerning the coronavirus,” mentioned Phil Flynn, senior market analyst with at Value Futures Group, sharing a broadly held view. “Due to financial issues popping out of China, due to the shutdown of main cities and factories and it’s impression on the Chinese language economic system, you’ll see some worries about capital flows going out of the [financial] markets.”
Towards reminiscent of backdrop, demand for gold tends to choose up, a number of survey respondents mentioned.
“I feel there may be positively a bid to this market proper now as a result of the numbers [of people infected and dying] maintain getting worse every single day,” mentioned Kevin Grady, president of Phoenix Futures and Choices LLC.
Seventeen market professionals took half within the Wall Road survey. Fourteen, or 82%, referred to as for gold to rise. There have been three votes, or 18%, saying gold would fall, and no voters calling for a sideways market.
In the meantime, 995 votes have been forged in an internet Major Road ballot. A complete of 687 voters, or 69%, regarded for gold to rise within the subsequent week. One other 163, or 16%, mentioned decrease, whereas 145, or 15%, have been impartial.
In final week’s survey for the buying and selling week now winding down, 59% of Wall Road voters and 67% of Major Road voters have been bullish. As of 11:20 a.m. EST, Comex April gold was up by 0.9% for the week so far to $1,592 an oz..
“I feel coronavirus dangers are going to stay entrance and middle for some time and due to this, gold may creep as much as retest the $1,600-$1,610 space, the place it peaked earlier this month in the course of the Center East disaster, someday within the coming days,” mentioned Colin Cieszynski, chief market strategist at SIA Wealth Administration. “Gold stays supported above $1,500.”
John Weyer, co-director of business hedging with Walsh Buying and selling, can be amongst those that appears to be like for gold to attract assist from the contagion.
“That’s nonetheless an enormous cloud over the markets,” Weyer mentioned. “Any time concern is hitting the [stock] market exhausting, it’s a great purpose for gold to be up.”
Richard Baker, editor of the Eureka Miner’s Report, figures Comex gold may “simply shut above $1,600 subsequent week” and silver regain $18 territory.
“It is all concerning the Wuhan coronavirus — gold up, every thing else down,” Baker mentioned. “The now-announced international well being emergency has had a chilling impact on [financial] markets this week, with the yellow metallic gaining worth on equities, key commodities and main currencies.”
George Gero, managing director with RBC Wealth Administration, appears to be like for gold to rise not solely due to the virus outbreak, however additionally as a result of Brexit and U.S. impeachment sagas, in addition to headlines about the economic system which will fear monetary traders.
“I like what I’m seeing within the gold market and I feel costs can proceed to push greater,” mentioned Jasper Lawler, head of analysis on the London Capital Group.
Afshin Nabavi, head of buying and selling with MKS, famous that Chinese language market individuals could also be again subsequent week after the Lunar New 12 months vacation.
“I want to purchase on dip and am searching for a transfer greater,” he mentioned. Nabavi put the vary at $1,545 to $1,595. “A break above $1,600 ought to ship us to the earlier excessive of $1,611, which we noticed after the Iranians launched a missile earlier this 12 months in January.”
In the meantime, Ole Hansen, head of commodity technique at Saxo Financial institution, mentioned he’s “reluctantly bearish” on gold for the quick time period. He mentioned that he’s upset with gold’s efficiency throughout per week of “horrendous uncertainty,” including that the market seems to be operating out of momentum.
“If there was per week the place gold ought to have excelled, this was it, however it didn’t,” Hansen mentioned. “It’s not an atmosphere to quick gold, however you additionally should acknowledge that gold’s not performing in addition to it ought to.”
Disclaimer: The views expressed on this article are these of the writer and should not replicate these of Kitco Metals Inc. The writer has made each effort to make sure accuracy of knowledge supplied; nevertheless, neither Kitco Metals Inc. nor the writer can assure such accuracy. This text is strictly for informational functions solely. It’s not a solicitation to make any change in commodities, securities or different monetary devices. Kitco Metals Inc. and the writer of this text don’t settle for culpability for losses and/ or damages arising from the usage of this publication.