Volatility Dominates Gold Market As ‘Central Banks Are Out Of Options’, Bullish Sentiment Intact – Kitco Gold Price Survey

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(Kitco News) – Bullish sentiment continues to dominate despite a $20 pullback ahead of the long weekend gold Market with volatility keeping investors watching back to $2,000 an ounce level according to Kitco’s gold price survey.

During the short trading week gold broke a key resistance level of $1,975 an ounce, with June Comex gold futures hit a high of $1,985 on Wednesday. And although prices fell on Thursday, gold futures ended the week up 1.2%.

Most of the 13 participating Wall Street analysts were bullish when asked about their gold price expectations for next week, with 46% forecasting higher levels. Another 31% were down, expecting a major pullback. And the remaining 23% were neutral.

The Main Street side was even more decidedly bullish. Of the 1,254 individual investors who participated, 72% expect higher prices, 16% expect lower prices and 12% are neutral, Kitco’s survey found. This was the highest retail turnout since November 19.

Many analysts pointed to gold’s technical progress after it surpassed $1,980 an ounce, saying it is a sign of strong interest in the metal that will continue to push prices higher.

“There is a growing belief in a long-term commodities rally along with the weakening of all major currencies. If gold can break $2,000 it will invalidate the double top and give it unlimited scope,” Forexlive.com’s main currency strategist Adam Button to Kitco News.

Gold has broken multiple formations, adding to the bullish sentiment, said Moor Analytics creator Michael Moor.

However, with the Good Friday and Easter holidays approaching, some are expecting weak trading due to the shortened week.



“I am neutral on gold for the coming week. Technically it’s on a rebound, but with so many holidays coming up over the next few days, trading in general could be quiet and it might be time for a pause as the price is near the big $2,000/oz round number.” said Colin Cieszynski, chief market strategist at SIA Wealth Management.

The bearish camp trended for a pullback next week as investors look to take profits after solid gains. But even those expecting lower prices in the near-term are confident that the broader macro environment will support higher prices going forward.

A long-term driver remains global central banks, which are being cornered by high inflation, Adrian Day Asset Management President Adrian Day said.

“We could see a pullback next week, but only superficially and ‘temporarily’ before gold starts to rally again in response to higher inflation, central banks running out of options and a worsening situation in Ukraine,” he told Kitco News. “The higher US inflation number leads some investors to believe that the Fed will indeed tighten in a meaningful way. But in fact, it will make the Fed’s eventual pullback all the more bullish on gold. So we certainly wouldn’t sell, but would like to add.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of the author Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article assume no responsibility for any loss and/or damage resulting from the use of this publication.

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