Vaccine hopes will continue to weigh on gold price
"Renewed investor optimism on hopes that a vaccine will revive the global economy faster than expected is weighing on
gold. According to the latest results from the Kitco News Weekly Gold Survey, Sentiment points to further weakness in the near-term.
The survey shows a majority of Wall Street analysts are bearish on
gold next week and optimism among retail investors remains below 50% after falling to a multi-year low the previous week.
The bearish sentiment comes as the
gold market has dropped below critical support levels. At the start of the week, gold prices fell to a four-month low after pushing below $1,850 an ounce. Heading into the weekend, the
gold market has continued to fall, dropping below critical support at $1,800. Analysts say that the next major support point to watch is $1,750.
“The reopening trade will continue to put pressure on gold as people exit the safe haven,” said Gareth Soloway, chief market strategist at InTheMoneyStocks.com said. “Once gold hits approximately $1,750, gold will find a bottom and start trekking up again.”
This week 15 analysts participated in the survey. A total of six voters each, or 40%, called for gold prices to rise next week; meanwhile, eight analysts, or 53%, called for lower prices; 1 analyst or 7% were neutral on gold.
Meanwhile, a total of 1,270 votes were cast this past week in online surveys. Among those, 585 voters, or 48%, said they were bullish on gold next week. Another 424 participants, or 33%, said they were bearish, while 261 voters, or 21%, were neutral on the precious metal.
Renewed investor optimism on hopes that a vaccine will revive the global economy faster than expected is weighing on
gold. According to the latest results from the Kitco News Weekly Gold Survey, Sentiment points to further weakness in the near-term.
The survey shows a majority of Wall Street analysts are bearish on
gold next week and optimism among retail investors remains below 50% after falling to a multi-year low the previous week.
The bearish sentiment comes as the
gold market has dropped below critical support levels. At the start of the week, gold prices fell to a four-month low after pushing below $1,850 an ounce. Heading into the weekend, the
gold market has continued to fall, dropping below critical support at $1,800. Analysts say that the next major support point to watch is $1,750.
“The reopening trade will continue to put pressure on gold as people exit the safe haven,” said Gareth Soloway, chief market strategist at InTheMoneyStocks.com said. “Once gold hits approximately $1,750, gold will find a bottom and start trekking up again.”
This week 15 analysts participated in the survey. A total of six voters each, or 40%, called for gold prices to rise next week; meanwhile, eight analysts, or 53%, called for lower prices; 1 analyst or 7% were neutral on gold.
Meanwhile, a total of 1,270 votes were cast this past week in online surveys. Among those, 585 voters, or 48%, said they were bullish on gold next week. Another 424 participants, or 33%, said they were bearish, while 261 voters, or 21%, were neutral on the precious metal."
[...]
FULL ARTICLE:
https://www.kitco.com/news/2020-11-27/Vaccine-hopes-will-continue-to-weigh-on-gold-price.html