Wall Street Turns Bearish, Eying Technical Damage To Gold Market
nchristensen@kitco.com
(Kitco News) - While
there is still some bullish sentiment for gold among Main Street
investors, analysts have turned slightly bearish on the yellow metal,
with many highlighting the recent technical chart damage done to the
market.
This
week, 19 traders and analysts took part in a Wall Street survey. Seven
voters, or 37%, see gold prices rising by next Friday. Nine, or 47%,
see lower prices, while three voters, or 16%, are either neutral or
expect sideways trading.
Meanwhile, 1,570 Kitco readers submitted
votes in an online Main Street poll. A total of 756 voters, or 48%, are
bullish. Another 639, or 41%, say that gold will fall, while 175, or
11%, are neutral.
In last Friday's survey for the current week,
voters looked for the metal to climb this week, although each camp was
less than a majority. Forty-three percent of Wall Street voters and 48%
of Main Street voters predicted gold would rise this week. Based on
where gold was trading late in the morning, neither camp was right. As
of 11a.m. EDT Friday, Comex June gold was down 3% for the week, last
trading at $1,229.10 an ounce.
So far in 2017 but not counting the
current week, Wall Street forecasters collectively were right 11 of 16
times for a winning percentage of 69%. Main Street was 9-7 for 56%.
Not
only is gold seeing its worst weekly loss since the week of the
November U.S. election, sentiment on Wall Street has turned bearish as
prices have broken below the 50-day and 200-day moving averages.
With
gold trading below key support levels, the technical chart damage
provides more downside risk for the market, according to some analysts.
“I
think we could see some further technical weakness to $1,210 and then
$1,200,” said Sean Lusk, director of commercial hedging with Walsh
Trading.
there is still some bullish sentiment for gold among Main Street
investors, analysts have turned slightly bearish on the yellow metal,
with many highlighting the recent technical chart damage done to the
market.
week, 19 traders and analysts took part in a Wall Street survey. Seven
voters, or 37%, see gold prices rising by next Friday. Nine, or 47%,
see lower prices, while three voters, or 16%, are either neutral or
expect sideways trading.
Meanwhile, 1,570 Kitco readers submitted
votes in an online Main Street poll. A total of 756 voters, or 48%, are
bullish. Another 639, or 41%, say that gold will fall, while 175, or
11%, are neutral.
In last Friday's survey for the current week,
voters looked for the metal to climb this week, although each camp was
less than a majority. Forty-three percent of Wall Street voters and 48%
of Main Street voters predicted gold would rise this week. Based on
where gold was trading late in the morning, neither camp was right. As
of 11a.m. EDT Friday, Comex June gold was down 3% for the week, last
trading at $1,229.10 an ounce.
So far in 2017 but not counting the
current week, Wall Street forecasters collectively were right 11 of 16
times for a winning percentage of 69%. Main Street was 9-7 for 56%.
Not
only is gold seeing its worst weekly loss since the week of the
November U.S. election, sentiment on Wall Street has turned bearish as
prices have broken below the 50-day and 200-day moving averages.
With
gold trading below key support levels, the technical chart damage
provides more downside risk for the market, according to some analysts.
“I
think we could see some further technical weakness to $1,210 and then
$1,200,” said Sean Lusk, director of commercial hedging with Walsh
Trading.
