Wall St., Main St. Look For Gold To Keep On Shining
(Kitco News)- Gold futures are heading for their third weekly rise in a row, and Wall Street and Main Street look for the metal tomake it four straight next week, based on the Kitco News gold survey.
A number of factors underpinned gold this week,including geopolitical tensions between the U.S. and Saudi Arabia afternews reports that journalist Jamal Khashoggi disappeared aftergoing into the Saudi consulate in Istanbul on Oct. 2. Italy is butting headswith the European Union as Italian officials push for a larger budgetdeficit than allowed by euro-zone rules. Also, U.S. equities have had periodicbouts of weakness and volatility lately.
Fourteen market professionals took part in theWall Street survey. Eleven respondents, or 79%, predicted higher prices bynext Friday. There were no bearish votes, while three respondents, or 21%,looked for a sideways market.
Meanwhile, 526 people responded to an onlineMain Street poll. A total of 316 respondents, or 60%, called for gold torise. Another 124, or 24%, predicted gold would fall. The remaining 86voters, or 16%, see a sideways
market.
Wall Street
Bullish
Bearish 
Neutral VS
Main Street
Bullish Bearish Neutral For the trading week now winding down, 79% ofWall Street voters and 67% of those on Main Street were bullish. Around 11a.m. EDT, Comex December gold was 0.7% higher for the week so far at $1,230.60an ounce.
Charlie Nedoss, senior market strategist withLaSalle Futures Group, looks for gold to get more of a safe-haven bid.Previously, the metal had struggled to draw safe-haven flows for much ofthe last several months.
"The environment is a little differentnow," Nedoss said. "We have the geopolitical stuff. You look at Italy and Europe....Themarket is taking that as the canary in the coal mine for the rest ofEurope."
Data overnight shows China's economic growth issoftening, and there are worries about a potential "tech wreck"in U.S. technology stocks, Nedoss said. Further, Bitcoin's troubles this yearmeans the cryptocurrency is no longer taking as many safe-haven flows away fromgold. And, Nedoss said, the technical charts are encouraging, with theDecember futures pressing up against the 100-day moving average at $1,233.70an ounce.
Daniel Pavilonis, senior commodities broker withRJO Futures, sees strength in gold, with the $1,238-$1,240 area the nextchart resistance. Should the market break above this, gold could move to the$1,275 area, he said.
"I think the dollar is going to come off alittle bit," Pavilonis said. "That will give some room for gold [torise]. I see a lot of momentum for gold after getting above $1,212."
Jim Wyckoff, senior technical analyst withKitco, said "higher amid heightened geopolitical uncertainty and friendlycharts."
Adrian Day, chairman and chief executive officerof Adrian Day Asset Management, also looks for gold to be "upbut moderately unless we get some further development in political, geopolitical,monetary or market spheres. Gold needs to digest the recent gains so needssomething new to move up further in the short terms."
Meanwhile, Kevin Grady, president of PhoenixFutures and Options LLC, went from being bullish a week ago to neutral aftergold's recent rise. Gold futures appear to be hitting some resistancearound the 100-day moving average, he said.
"I think we need a close above $1,250.50 tosee another wave of new longs enter the market," Grady said.
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.  |