Wall Street, Main Street expect gold price uptrend to continue

(Kitco News) – Wall Avenue and Primary Avenue alike search for gold to proceed the latest bounce subsequent week.

                   

13 market professionals took half within the Wall Avenue survey. Ten, or 77%, referred to as for gold to rise. There have been no votes saying gold would fall, with three voters, or 23%, impartial or calling for a sideways market.

In the meantime, 820 votes have been solid in a web based Primary Avenue ballot. A complete of 475 voters, or 58%, appeared for gold to rise within the subsequent week. One other 208, or 25%, mentioned decrease, whereas 137, or 17%, have been impartial.

In final week’s first gold survey of the 12 months, the biggest Primary Avenue and Wall Avenue voting blocs have been bullish, though respondents total have been considerably combined with no camp garnering greater than 50% of the vote. As of 10:42 a.m. EST,  Comex February gold was 0.3% decrease for the week to this point to $1,555.10 an oz..

The Comex February futures rose to a roughly seven-year excessive of $1,613.30 an oz. on Jan. eight when the world was anxious a few warfare between the U.S. and Iran. Costs subsequently fell again as tensions de-escalated, bottoming at $1,536.40 an oz. on Tuesday, earlier than the steel started working its approach greater once more.

“I feel we’re going to proceed upwards subsequent week,” mentioned Bob Haberkorn, senior commodities dealer with RJO Futures. “It’s due solely on some actions you’re seeing at night time by the Fed … with the liquidity injections they’ve doing.”

Additional, he added, though equities have been hitting file highs, some traders have been shifting into gold as a security play simply in case shares instantly right sharply decrease.

Richard Baker, editor of the Eureka Miner’s Report, additionally mentioned greater, mentioning that gold has been in a position to climb alongside equities. He additionally cited low curiosity charges.

“If the S&P 500 reaches 3,350 subsequent week, gold should make $1,580 per ounce to remain above water,” Baker mentioned. “I am optimistic that that is attainable given residual uncertainty in regards to the U.S. election, company earnings and 2019 progress. My vote is up, with silver following that degree to $18.31 per ounce.

“From an interest-rate perspective, even with a pattern greater in international yields, a bullish setting stays for a non-interest-earning asset like gold. Unfavorable or near-zero rates of interest for main international locations and near-zero actual charges within the U.S. stay in place.”

Charlie Nedoss, senior market strategist with LaSalle Futures Group, seems to be for gold to be sideways to greater, however emphasised that a lot will hinge on whether or not February gold can shut above the 10-day shifting common close to $1,558. As he spoke, gold was inside putting distance of this.

“The shut is essential in the present day,” Nedoss mentioned. “If we shut above that 10-day, that can be seen as constructive.”

A failure to take action, nevertheless, may imply a take a look at of the 20-day common down round $1,534.80, he cautioned.

George Gero, managing director with RBC Wealth Administration, seems to be for greater gold costs due “many legitimate worries” – political, geopolitical and financial.

“Gold ought to proceed is bullish momentum within the new week,” mentioned Phil Flynn, senior market analyst with at Worth Futures Group. “Sturdy shares together with weak inflation information this week ought to give gold the sting. The phase-one [U.S.-China] commerce deal ought to enhance financial optimism, enhancing the outlook for jewellery demand as nicely.”

Colin Cieszynski, chief market strategist at SIA Wealth Administration, anticipates a impartial market.

“I feel it has had a crucial correction as political tensions eased and should now return to consolidation mode round $1,550,” he mentioned.

 Jim Wyckoff, Kitco’s senior technical analyst, mentioned he seems to be for “extra uneven and sideways buying and selling as bulls have stabilized the market.”