Wall St. Bullish, Main St. Bearish On Gold Prices
(Kitco News)- Wall Street figures gold prices are due for a bounce while Main Street looks for further weakness, basedon the weekly Kitco News gold survey.
Sixteen market professionalstook part in the Wall Street survey. Eight respondents, or 50%, called forhigher prices, while six, or 38%, said lower. Two respondents, or 13%,predicted a sideways market.
Meanwhile, 989 votersresponded in an online Main Street survey. A total of 559 respondents, or 57%,predicted that gold prices will be lower in a week. Another 313 voters, or 32%,said gold will rise, while 117, or 12%, see a sideways market.
Wall Street
Bullish
Bearish 
Neutral VS
Main Street
Bullish Bearish Neutral For the trading week nowwinding down, 41% of Wall Street voters were bullish while 42%of Main Streetrespondents were bearish. Around 11 a.m. EDT, Comex December gold was down 0.5%for the week so far to $1,232.70 an ounce.
AdamButton, managing director of ForexLive, is among the Wall Street majoritylooking for goldto stage some kind of recovery.
“It’s now or never for gold,” Button said.“Gold is down in seven of the past eight weeks but no trend lasts forever.August seasonals are positive for gold and there is nearby support at $1,200.”
Sean Lusk, director ofcommercial hedging with Walsh Trading, looks for some bargain hunting toemerge, especially if chart support holds.
“The [U.S.] unemploymentnumber was a little disappointing here,” he said. “Seasonally, we’re going to comeinto more of a buy-the-dips mentality.”
Ken Morrison, editor ofthe newsletter Morrison on the Markets, said the ingredients are in place for a“meaningful counter-trend rally” in gold.
“Thedollar index has stalled at resistance, bullish sentiment in gold at 6% is thelowest level since December 2016, and managed-money funds came into the weekwith a record net short, surpassing the previous record in December 2015,”Morrison said. “I expect December gold trades to $1,240 sometime during the weekahead.”
Colin Cieszynski,chief market strategist at SIA Wealth Management, is also bullish.
“Goldis approaching a retest of $1,200/oz as we near the end of a seasonally weakertime of the year for gold,” he said. “Technically, while we saw a lower low forgold this week, we saw the RSI [Relative Strength Index] bottom at a higher lowin oversold territory, a bullish positive divergence. Also USD [the U.S. dollarindex] appears to be leveling off near 95 and [10-year Treasury] yields areleveling off near 3%. Nonfarm payrolls missed and its six weeks to the next Fedmeeting, so I don’t see much in the coming week to push USD higher or goldlower.”
Meanwhile, Kevin Grady, president of Phoenix Futures andOptions LLC,
suspectsthat Friday’s post-payrolls bounce will be a temporary phenomenon.
“Gold rallied off of our lowsthis morning due to the miss in nonfarm payroll number,” Grady said. “I thinkthis is a selling opportunity. I remain bearish and believe that next week, wewill test the $1,200 support level. Higher rates will continue to put pressureon gold. I see no reason to get long at these levels.”
PhillipStreible, senior market strategist with RJO Futures, also sees a potential testof $1,200.
“With such little positivereaction to the jobs number, I would expect the glass floor to break on thegold market and the next wave of selling to come in,” he said. “We could see adownside move to $1,200 next week.”
Mark Leibovit, editor ofthe VR Gold Letter, is neutral until hesees a buy signal with meaningful volume.
“We'rein the time frame for a rally. Where is it?” he asked rhetorically.
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.