Wall St., Main St. See Gold Keeping Its Shine
(Kitco News)- Wall Street and Main Street both look for gold to buildon its gains next week, based on the weekly Kitco News gold survey.
Comex December gold hit a two-week high of $1,218 anounce on Thursday. Commerzbank cited several factors - a slightly softer-thanforecast U.S. inflation report, a European Central Bank deemed somewhat“cautious” in unwinding loose monetary policy, and a rate hike in Turkey thatboosted the country’s currency and thus made gold less expensive for itscitizens.
Seventeen market professionals took part in the WallStreet survey. Ten respondents, or 59%, predicted higher prices. There was justone vote, or 6%, calling for lower prices, while six respondents, or 35%, wereneutral or looked for a sideways market.
Meanwhile, 485 people responded to an online poll. Atotal of 250 respondents, or 52%, called for gold to rise. Another 158, or 33%,predicted gold would fall. The remaining 77, or 16%, see a sideways market.
Wall Street
Bullish
Bearish 
Neutral VS
Main Street
Bullish Bearish Neutral For the trading week now winding down, 41% of Wall Streetvoters and 49% of Main Street respondents were bullish. Around 11 a.m. EDT,Comex December gold was up 0.3% for the week so far to $1,203.70 an ounce.
Ken Morrison, editor of the newsletter Morrison on theMarkets, sees the potential for gold to break up through $1,220 an ounce.
“$1,220 has proven to be the show-stopper for gold, but withgood support at $1,195 and a dollar that is losing some punch, I expect goldwill break through $1,220 in the week ahead, penetrating a short-term trendresistance line connecting from a late July high,” Morrison said. “$1,225 is arealistic upside target next week.”
Kitco senior technical analyst Jim Wyckoff sees steady tohigher gold. “Prices are in a fledgling uptrend,” he said.
Phil Flynn, senior market analyst with at Price FuturesGroup, also sees more gains.
“Trade-war talks as well as the fact that some areworried that the Fed may pause after the September rate hike is giving us somesupport,” Flynn said. “The flattening yield curve could inspire more buying.”
Colin Cieszynski, chief market strategist at SIA WealthManagement, is bullish on gold for next week.
“We’re entering the strongest time of the year seasonallyfor gold and at the same time, I think the headwind from the rising U.S. dollarcould ease in the short term. Gold regaining $1,200 and shrugging off weaknessearlier in the week suggests to me that support is starting to come in behindgold once again.”
Meanwhile, David Madden, market analyst at CMC Markets,was the lone Wall Street bearish vote on gold.
“I don’t expect to see a lot of movement in gold rightnow, but if I had to pick a side, I think you have to look to the downside,”Madden said.
Kevin Grady, president of Phoenix Futures and Options,said he is neutral. “There is a lot of news that is driving the markets rightnow, so I think less people are inclined to get short at these levels,” hesaid.
Sean Lusk, director of commercial hedging with WalshTrading, sees a sideways market.
“The market can’t extend for whatever reason,” Lusk said.“Stocks may be hurting it. There’s no safe-haven buying....We’ve got to get a catalystto move higher. There needs to be a reason to cover shorts or build longs.”
Here are two comments from Main Street voters:
“Short term, both gold and silver have some more way todrop before a historic recovery.”
“I think gold is range-bound [between] $1,175-$1,225until the midterm elections. What did Jim Rogers
say - waiting for $1,130? Hope he’s wrong, but if he’snot, I’ll gladly add some FSAGX to my 401[k]. Have a nice day, pray for thosein the path of the hurricane.”
By Allen Sykora
For 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.