Kitco News Gold Survey: Wall St. Returns To Bullish Short-Term Price View
(Kitco News) - WallStreet analysts have once again joined Main Street with a bullish short-termoutlook on gold, based on the weekly Kitco News gold survey.
Wall Street
Bullish
Bearish 
Neutral VS
Main Street
Bullish Bearish Neutral Twentymarket professionals took part in the Wall Street survey, with twelve, or 60%,calling for gold to rise in the next week. Previously, Wall Street had beenbearish for two weeks in a row. Another seven voters, or 35%, said lower, whileone voter was undecided.
Participationof 450 votes was lighter than usual in the online Main Street poll. A total of284 voters, or 63%, said bullish. Another 106, or 24%, said lower, while 60, or13%, were neutral.
Forthe trading week now winding down, the largest camp (50%) of Wall Street voterswas bearish while 56% of Main Street voters were bullish. Around of 11:10 a.m.EST, Comex April gold was up 3.2% for the week so far to $1,358.20 an ounce.
Notcounting the current week, Wall Street is 3-2 so far in 2018, while Main Streetis 2-3. For the year 2017, Main Street was right 31 of 50 times for a winningpercentage of 62%.Wall Street forecasters collectively were right 30 of 51times for 59%. (There were two weeks without a Main Street poll and one weekwithout a Wall Street poll).
“I am looking for $1,400 for gold in coming days,” saidAfshin Nabavi, headof trading at trading house MKS (Switzerland) SA.
Neil Mellor, senior currency strategist at BNY Mellon, isbullish on gold in the near term, citing a breakdown between the U.S. dollarand yields that point to more U.S. dollar weakness. “You have to like gold inthis environment,” Mellor said.
KevinGrady, president of Phoenix Futures and Options LLC, also looks for a softer dollar to underpin gold.
“Although we are seeing higher rates, gold seemsto be focusing more on the weaker U.S. dollar,” Grady said. “I see gold highernext week.”
So does Phil Flynn Phil Flynn, seniormarket analyst with at Price Futures Group. “A little dose of inflation fears and stock-market stabilitywill find some buying in gold,” Flynn added.
Jim Wyckoff, senior technicalanalyst with Kitco, also sees gold rising, commenting that “chartshave turned more near-term bullish this week.”
Meanwhile, Ole Hansen, head ofcommodity strategy at Saxo Bank, is among those who seegold lower on the risk of the dollar mounting a small comeback.
“Gold has once again returned to anarea of resistance where several battles between bulls and bears have beenfought since 2014,” Hanson said. “On the previous two occasions in July 2016and last September, the rejection resulted in sharp corrections. With this inmind, it is natural to see the market pause once again while trying to gaugewhether this time is different. Whether or not that is the case very muchdepends on the dollar's ability to weaken further while maintaining the themeof rising inflation potentially spiced with geopolitical uncertainty.”
KenMorrison, editor of the newsletter Morrison on the Markets, alsosaid lower due to the dollar.
“With goldnearing the twin peaks of September and January near $1,370 and the dollar indexshowing signs of a double-bottom low, I'll go with a pullback for gold in theweek ahead,” Morrison said. “Bullish sentiment on the euro and yen, themajority weights of the dollar index, is nearing extreme levels near 90% as is gold,indicating a correction likely in all three. I expect gold trades at $1,335sometime over the next week.”
Colin Cieszynski, chief market strategist at SIA WealthManagement, said he sees long-term potential for gold, but is bearish in theshort term on a view that the market is running out of momentum for now.
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.