Sentiment among traders has turned openly bullish on gold, Anna Golubova writes.
Kitco’s latest Wall Street versus Main Street gold survey revealed that Main Street might be overly bullish on gold prices this week, with nearly 80% of individuals polled saying they expect gold prices to rise after briefly hitting the $1,300 mark last week.
Last time Main Street was this bullish was April 12, when 84% of individuals polled called for higher prices. That was one day after gold prices had peaked on April 11 at $1,385.40, with futures beginning their prolonged decline that lasted roughly until mid-October. February Comex gold futures were last trading at $1289.60, up 0.30% on the day.
“Most veteran market watchers know the old saying that most of the general investing public is wrong on their notions of markets’ price direction most of the time. The fact that ‘Main Street’ is so bullish on gold prices at present does suggest the gold market has the potential a significant downside correction soon,” Kitco’s senior technical analyst Jim Wyckoff said.
Other analysts pointed out that such bullish sentiment coming from Main Street is a sign that gold is finally looking ready to break through its psychological resistance of $1,300 an ounce.
Are we in store for another decline in gold just around the corner?
See the article on Kitco: Is Main Street Overly Bullish On Gold? And What Does That Mean For Prices? | Kitco News
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