Gold prices hold significant support but are still stuck in neutral


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(Kitco News) – The pressure of rising inflation falls on negative real yields creating solid support for gold. According to Wall Street analysts in the latest results in the Kitco News weekly gold survey, the market remains neutral in the near future.

Meanwhile, the sentiment among the retail investors has increased significantly as the precious metal trading range remains narrow.

“Gold is a bit sluggish right now, but we should see some excitement soon,” said Philip Streeble, chief market strategist at Blue Line Futures. “The nail is getting tight and is getting close to a breakout. There is a strong floor in prices, so we are optimistic that prices will break upwards.”

This week, 15 Wall Street professionals participated in the latest Kitco survey. Among the participants, five voters, or 36%, asked for an increase in gold prices; Three analysts, or 21%, said they expected to see lower prices and six voters, or 43% were neutral on the precious metal.

Ole Henson, head of commodity strategy at Saxo Bank, said, “I believe that gold needs to do some more work within the established limits.”

Hansen said that he too does not think gold has seen a decrease in this new consolidation period.

Among retail investors, sentiment reached its highest level in a month.

A total of 1,359 votes were cast in an online Main Street poll. Of these, 926 respondents, or 68%, looked for gold growth next week. Another 205, or 15%, said less, while 228 voters, or 17%, were neutral.

Many analysts said they are neutral on gold due to the renewed US dollar. The US Dollar Index ends the week with significant psychological levels around 93 points.

Mark Lebovits, publisher of VR Metals / Resource, said that he is holding on to gold due to the recent rally in the US dollar.

Although the bulk of market analysts are neutral on gold, the market is still strong as prices support above $ 1,900 an ounce.

“Gold is becoming very resilient, bouncing off support since the beginning of August and the 50-day moving average,” said Adrian Day, president and chief executive officer of Adrian Day Asset Management.

Darin Newsom, president of Darin Newsom Analysis, said he is bearish on gold because the technical picture is bearish; However, he warned investors: “A market that cannot go down will not go down.”

“It’s something that’s holding value and I think it’s all the stress and uncertainty in the market,” he said.

Ultimately, he said he is recessionary because he expects the US dollar to eventually push gold below $ 1900 per ounce. He said he sees the four-week low of gold at $ 1,874 as a significant support.

LaSalle Futures Group senior market strategist Charlie Nedos said that although technically, gold looks heavy, he is optimistic that prices will rebound next week.

“Last week, we were testing support on the 50-day moving average and now we are challenging the 20-day moving average in the week,” he said. “I think the path of least resistance is up.”

Nedos said he would like to see gold prices above $ 1,954 a week. He said eventually the uptrend is still intact as prices are above $ 1,941 an ounce.

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