( Kitco News ) -The gold market is preparing to end the fifth consecutive week of profit with prices holding above $ 1,800 an ounce, near the highest level since 2011 and both Wall Street analysts and Main Street investors don 't that this trend aims to end anytime soon.
The latest results of Kitco News's weekly Gold survey show unprecedented bullish sentiment on the market with Wall Street psychology at the highest level in the survey history. Most analysts note that breaking gold above $ 1,800 an ounce has created significant momentum in the market.
You have to keep up the trend, no matter how much I want to see better adjustment and entry into the market, he said, Phillip Streible, chief market strategist at Blue Line Futures.
Of the 17 Wall Street experts participating in the poll this week, 15, or 88%, called for gold prices to rise. Two analysts, or 12%, predicted lower prices. There are no neutral votes in this week's survey.
A total of 1,610 votes were cast in an online poll on Main Street. Of these, 1078 respondents, or 67%, were looking for gold to rise next week. 300, or 17%, said lower, while 232 voters, or 14%, were neutral.
Wall Street
88%
twelfth%WITH
Main road
sixty seven%17%
In the last survey for the current trading week, Wall Street and Main Street both rose. As of 11:10 am EDT on Friday, Comex gold futures were last traded at $ 1,805.90 an ounce, up nearly 1% from the previous week.
Not only has gold been pushed above the key long-term resistance level, but analysts note that the COVID-19 pandemic continues to spread throughout the United States, creating no uncertainty in economic activity.
Afshin Nabavi, head of trading with MKS (Switzerland) SA, said an adjustment would be good for health at these levels but there is no reason to sell gold right now. The gold market looks healthy as the global economy worsens day by day.
Charlie Nedoss, senior market strategist at LaSalle Futures Group, said that a weak US dollar could depreciate, which would boost gold prices.
He said that the use of the US dollar is starting to increase.
Nedoss added that he was raising gold prices as prices continued to bounce off support at the rising 10-day moving average.
Adrian Day, executive director of Adrian Day's asset management, said he was raising gold prices but also wanted to see a correction.
As long as the flow continues, it will move up. We see nothing imminent to stop those flows, he said.
Colin Cieszynski, chief market strategist at SIA Wealth Management, said that it is not only gold's technical momentum towards higher prices, but three major central bank meetings that can support the gold metal. He added that there are expectations that the Bank of Japan, the Bank of Canada and the European Central Bank will reaffirm their commitment to supporting the global economy.
However, not all analysts raise prices on precious metals. Frank McGhee, a precious metals dealer at Alliance Financial, said that he was lowering the price of gold when trading began to seem a bit crowded.
However, he added that anyone who sells in the current environment needs to be agile.
Selling high news is only somewhat less risky than trying to catch a knife into a major break, he said.
Lukman Otunuga, senior research analyst at FXTM, is the second bear in this week's survey, saying that due to the massive move of gold above $ 1,800, the market may be affected by some profit. significantly.
After charging the battery to a level not seen for nine years, Gold may undergo a technical correction back to the area of $ 1,780- $ 1,765 before the bulls gather new momentum, he said.
