Main Street Bullish On Prices, Wall Street Split
(Kitco News) - Main Streetremains bullish while Wall Street is split on the short-term direction of goldprices, according to the Kitco News weekly gold survey.
Sixteen marketprofessionals took part in the survey. Seven respondents, or 44%, called forgold prices to rise over the next week. Another six voters, or 38%, looked forgold to fall, while three, or 19%, called for a sideways market.
Meanwhile, 677 voters responded in an online Main Streetsurvey. A total of 463 respondents, or 68%, predicted that gold prices would behigher in a week. Another 145 voters, or 21%, said gold will fall, while 69, or10%, see a sideways market.
Wall Street
Bullish
Bearish 
Neutral VS
Main Street
Bullish Bearish Neutral For the trading week nowwinding down, 69% of Wall Street voters and 82% of Main Street voters werebullish. Shortly before 11 a.m. EDT, as Comex June gold was down 0.7% for the weekso far to $1,337.90 an ounce.
“At the end ofthe day, we are probably going to be higher because of geopolitical risks,inflation risks and concerns about possible sanctions on Russia and Iran,”said Phil Flynn, senior market analyst with PriceFutures Group.
CharlieNedoss, senior market strategist with LaSalle Futures Group, sees gold rising ona view that a rally in the dollar index will run out of steam.
“Thedollar has been on kind of a run. I see resistance overhead in the dollar[index],” Nedoss said. “North of 90, you will start to see resistance.”
AdrianDay, chairman and chief executive officer of Adrian Day Asset Management,
said “it is only a matter of time” before gold makes a convincing upsidebreakout.
“There are several fundamental factors supporting the move higher: despiteinterest rates in the U.S. moving higher, the dollar has failed to follow, asignificant divergence indicating dollar weakness ahead; political andgeopolitical factors, in Washington and in the Middle East, in particularsupport gold; and the Fed and other banks are likely to lag inflation movinghigher, which is also positive for gold,” Day said.
Sean Lusk, director of commercial hedging with WalshTrading, also said higher, suggesting that dips will be buying opportunities.
“There are too many questions marks,” Lusk said. “Idon’t see the market turning over.”
Meanwhile, Adam Button, managing director ofForexLive, sees gold falling.
“Therise in Treasury yields argues against holding gold in the week ahead,” hesaid. “With 10-year Treasuries paying nearly 3%, yield is beginning to be afactor.”
BobHaberkorn, senior commodities broker with RJO Futures, sees gold falling butonly slightly, with nervousness about equities helping to keep a floor underthe market.
“Thegeopolitical fears seem to be subsiding,” he said. “We are a week past theSyrian situation [allies firing missiles]. The situation on Korea seems to begetting better and better.”
KenMorrison, editor of the newsletter Morrison on the Markets, still looks for themetal to test a downside chart level not reached this week.
“It's been a featureless week, essentially sidewaysconsolidation,” Morrison said. “The market didn't get to my $1,330 downsidetarget for the week but with the dollar strengthening, I'll look for that $1,330trendline support to be tested next week.”
Robin Bhar, metals analyst at Societe Generale, is amongthose who see a sideways market.
“It’sjust trapped in a very tight trading range,” he said. “Bullish factors areoffsetting the bearish factors.”
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.