Wall St. Still Upbeat On Gold; Main St. Flips To Bullish
(Kitco News)- Wall Street and MainStreet both look for higher gold prices next week, based on the weekly KitcoNews gold survey.
This marks a sharpturnabout for Main Street, after 74% of these respondents last week called forgold to fall during the current week. This was the most Main Street bearishnessin the survey’s three-year history.
This time around, 326 outof 718 Main Street respondents, or 45%, called for gold to rise. A total of277, or 39%, predicted gold would fall. The remaining 115, or 16%, see asideways market.
Seventeen marketprofessionals took part in the Wall Street survey. Nine respondents, or 53%,called for higher prices, while just two, or 12%, said lower. Six respondents,or 35%, predicted a sideways market.
Wall Street
Bullish
Bearish 
Neutral VS
Main Street
Bullish Bearish Neutral For the trading week nowwinding down, 57% of Wall Street voters were bullish while 74% of Main Streetwas bearish. Just before 11 a.m. EDT, Comex December gold was up 2.4% for theweek so far to $1,212.30 an ounce.
Adrian Day, chairman andchief executive officer of Adrian Day Asset Management, said that he is“cautiously bullish” on the metal’s short-term prospects.
“Gold is oversold, but maynot bounce back immediately,” Day said. “Concerns about the global economybecause of the tariff battles, and especially the emerging markets because of Turkey’scurrency crisis, are hurting demand for gold. Some respite on either front aswell as a pullback in the dollar would help gold.”
Ralph Preston, principalwith Heritage West Financial, looks for a continued technical bounce off ofchart support.
Richard Baker, editor ofthe Eureka Miner Report, is also upbeat, suggesting that gold may follow theChinese yuan.
“The People's Bank ofChina stabilized the yuan before this week's trade talks,” Baker said. “Thismorning the offshore yuan (USD/CNH) has slipped below onshore currency(USD/CNY) -- a sign traders are betting on short-term strengthening.
“This is bullish for gold;as the Chinese currency strengthens, so does [the] gold price in U.S. dollars.There are also signs that Asian demand for gold is on the rise.”
Meanwhile, DanielPavilonis, senior commodities broker with RJO Futures, looks for gold to easedue to its normal inverse relationship to the U.S. dollar.
“The dollar is going tocontinue to get stronger,” Pavilonis said. “Money wants to be in the dollar. Ifwe [the U.S.] keep raising rates, the dollar will go higher.”
Afshin Nabavi, head oftrading at trading house MKS (Switzerland) SA, sees a sideways market between$1,180 and $1,210 an ounce. “Summer doldrums are here for the time being,” hesaid.
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.