Editor’s Note: Markets are highly volatile, so stay on top of the daily news. Catch up in minutes with today’s must-read news and a quick rundown of expert opinion. Sign up here!
(Kitco News) – The gold market ended six straight months lower, but sentiment is improving as demand for some safe havens creeps into the market.
The latest Kitco News Gold Survey shows that both Wall Street analysts and Main Street retail investors are bullish on gold in the short term.
Analysts say gold’s safe-haven shine has regained its luster following significant volatility in global financial markets. Earlier in the week, the Bank of England was forced to intervene in global bond markets and buy long-term bonds. The collapse of British bonds was triggered after the government announced that he would spend nearly £300bn to help the struggling economy.
The budget deficit plan also pushed the British pound down to historic lows against the US dollar. The Bank of England’s market intervention, the first since 1998, came less than a week after the Bank of Japan was forced to support its currency as the US dollar gained momentum, analysts say.
Colin Cieszynski, chief market strategist at SIA Wealth Management, said gold has struggled against the US dollar but has held record highs against the Japanese yen, British pound and euro. Told.
“If markets are in turmoil, gold should become a very attractive global currency and help it maintain its unique position against the US dollar,” he said. “We’ll have to wait and see if we see an attractive tradable rally in gold and it turns into something else.”
A total of 16 market experts participated in Kitco News’ Wall Street survey this week. Ten analysts (63%) said they were bullish on gold next week. At the same time, the bearish and neutral views next week were tied by 3 votes or 19%.
On the retail side, 731 respondents participated in an online poll. A total of 389 voters, or 53%, called for a higher gold price. Another 225 of him, or 31%, predicted gold would fall. The remaining 117 voters (16%) called for a flat market.
Bullish sentiment comes as the gold price ends the week up 1%. This is his second positive weekly result in the last eight weeks.
Darrin Newsom, president of Darrin Newsom Analytics, said gold price action has created a technically bullish key reversal. ” he said.
He added that there are also signs that the US dollar has peaked in the short term.
“China has been buzzing with US dollar selling, and the index may be nearing a long-term high on the monthly charts. it is possible,” he said.
Not only is gold creating technical bullish momentum in the short term, but Philippe Striveble, chief market strategist at Blue Line Futures, said gold and silver are entering a strong season.
He added that buying the February gold call option is recommended to limit the risk if this new momentum fades.
“Seasonally, gold has risen in 12 weeks in the last 13 years and in the next three weeks.
However, not all analysts are bullish on gold in the short term. Kitco.com senior technical his analyst Jim Wyckoff said the charts still show gold is in a bearish downtrend, which could continue to weigh on sentiment.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.