( Kitco News ) -Gold is expected to continue to rise from the mid-March low, based on the weekly Kitco gold price survey.
Expectations came after the Federal Reserve recently conducted a quantitative easing that ended open and the United States quickly issued a $ 2 trillion fiscal stimulus effort to deal with COVID-19 pandemic and its impact on employment. Other countries are also acting to boost global economies and stabilize markets.
Bob Haberkorn, senior cargo broker at RJO Futures, said, with all the stimulus money, zero interest rates, job losses and many battles on the economic front.
Moreover, he points out, gold has begun to diverge from stocks, thus reaffirming its role as a safe haven. Since mid-March, precious metals have been depreciating with stocks as traders have to liquidate their assets in general to cover losses and offset margin calls in other markets. But there was a period this week when gold rose higher as stocks plummeted, Haberkorn pointed out.
Twelve market experts took part in the Wall Street survey. Eleven participants, or 92%, called for higher prices next week. Other respondents (8%) said he expected the price to be flat.
Meanwhile, 1,245 votes were cast in an online poll on Main Street. A total of 834 voters, or 67%, were looking for gold to rise next week. Another 235, or 19%, said lower, while 176, or 14%, was neutral.
Wall Street
92%
0%WITH
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sixty seven%19%In the last survey for the current trading week ending, 71% of both Wall Street and Main Street participants increased prices. As of 11:04 am EDT on Friday, June Comex gold traded down 0.6% for the week at $ 1,643.50 an ounce, despite the smart rebound from the mid-week lower.
I don't see how this doesn't go any further, Sean said Sean Lusk, co-director of commercial risk insurance with Walsh Trading. We will find buyers ready on any given amount with the money being poured in [through stimulus and monetary policy].
Lusk analyst Phil Flynn and Price Futures Group, who also voted higher, said the market will begin to predict inflation as a result of all monetary and financial stimulus.
I am raising the price for next week. I continue to believe that this low interest rate environment, along with the global expansion of the central bank balance, will be very positive for gold prices, said Kevin Grady, president of Phoenix Futures and Options.
Jim Wyckoff, Kitco's senior technical analyst, also said higher for next week.
The percentage of 10-year US Treasury yield is trading at about 0.6% on Friday, after trading over 1% last week. Falling U.S. Treasury yield this week is a sign that U.S. bond traders - arguably the smartest traders in the world - expect serious markets / economic crises. more happens, including the assumption that most markets are not fully priced in the last global economic situation. Coronavirus disease will be accurate, Hay Wyckoff said. This scenario is a price increase for gold.
Charlie Nedoss, senior market strategist at LaSalle Futures Group, said he was looking for gold to keep rising after testing and holding support at the 10 and 20-day moving averages. He also doubts the US dollar will be under pressure.
We [gold prices] are starting to walk, we say.
Richard Baker, editor of the Eureka Report, listed the target as $ 1,680 gold and $ 15 for silver. Gold has made three runs at $ 1,700 since the end of February but could not sustain above this level. Baker noted that there was again, liquidation once again driven by the bouts of strength in the US dollar index.
This will eventually diminish as more stimulus becomes the wind for US money, Baker Baker said. However, the picture of interest rates has once again become favorable for gold with a 10-year real interest rate [adjusted for inflation to show real yields] and the German Bund both dropped by 50 basis points.
