Wall St. Bullish, Main St. Mixed On Gold Prices
(Kitco News)- Wall Street remains bullish butMain Street is mixed on the direction of gold prices in the next week, based onthe Kitco News weekly survey.
Gold tumbled to its lowest levelin six months this week largely due to strength in the U.S. dollar. In doingso, the metal was unable to draw a safe-haven bid despite weakness in equitymarkets as worries about a global trade war intensified.
Seventeen market professionalstook part in the survey. There were 10 votes, or 59%, calling for gold pricesto rise. There were five votes, or 29%, calling for gold to fall, while twovoters, or 12%, look for a sideways market.
Meanwhile, 2,276 voters respondedin an online Main Street survey. A total of 915 respondents, or 40%, predictedthat gold prices would be lower in a week. Another 796 voters, or 35%, saidgold will rise, while 565, or 25%, see a sideways market.
Wall Street
Bullish
Bearish 
Neutral VS
Main Street
Bullish Bearish Neutral For the trading week now windingdown, 63% of both Wall Street and Main Street were bullish. As of 10:44 a.m.EDT, Comex August gold was down $6.20 for the week so far to $1,272.30 anounce.
“Although it went against me lastweek, I am bullish on gold for next week,” said Colin Cieszynski, chief marketstrategist at SIA Wealth Management.
“Technically gold looks ready fora bounce, RSI [Relative Strength Index] is oversold and turning up, Thursdaywas a hammer candle and a bump up Friday would complete a Morning Starpattern,” he said. “On the flip side, USD [the U.S. dollar] is looking tiredwith a negative RSI divergence emerging. With all of the central-bank news nowout and trade war risks baked in, I think both gold and USD are due for acorrection.”
Ken Morrison, editor of thenewsletter Morrison on the Markets, also sees a bounce.
“Sentiment on gold got to itsmost bearish level since December 2016 Thursday but the recovery off theintra-day low combined with the modest turn lower in the dollar is encouragingfor gold,” Morrison said. “I expect the market can rally to its firstresistance at $1,288 but has the potential to approach $1,305, the downtrendline of resistance.”
Daniel Pavilonis, seniorcommodities broker with RJO Futures, is also looking for a recovery.
“The dollar is going to weaken,”he predicted. “It should be supportive for the metals...It’s more like a mean reversion.I don’t think we’ll see a substantial move to the upside.”
Sean Lusk, director of commercialhedging Walsh Trading, figures some buying will emerge ahead of the end of themonth and quarter. “There is going to be some bargain hunting down here,” Lusksaid.
Meanwhile, Jim Wyckoff, Kitcosenior technical analysts, is among those who see gold lower in the next week.“Charts remain bearish,” he said.
Ralph Preston, principal withHeritage West Financial, also sees potential for more weakness since goldfailed to break above resistance some time ago.
“Gold prices have been unable toclose above $1,345-$1,365 resistance zone on a quarterly/monthly basis,”Preston said. “We would need such a close to hope for a sustained rally.”
By Allen SykoraFor Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.