Wall Street and Main Street look for gold prices to climb this week, with the Federal Open Market Committee widely expected to cut U.S. interest rates, according to the weekly Kitco News gold survey.
Wall Street respondents cited a dovish Fed, technical-chart momentum in gold and the ability of the market to attract buying interest from fund managers on any price dips. However, many Wall Street respondents either look for either lower prices – saying a rate cut is already factored into the market, thus profit-taking may occur when the actual news occurs – or are neutral heading into what could be a volatile week for prices.
Comments by 953 Main Street respondents:
In the last survey, Main Street and Wall Street were both bullish on prices for the week. Comex August gold futures were trading $6.60 lower for the week so far at $1,420.10 an ounce.
Wall Street and Main Street both have a 15-13 winning record for the year to date, meaning respondents have been right 54% of the time.