The gold bears had their chance to take control of the market but failed, and now the bulls are in full control as both Wall Street and Main Street expect to see higher prices in the near-term as uncertainty dominates financial markets, reported by Kitco News.
With the Federal Reserve’s monetary policy in the rearview mirror, analysts say that global uncertainty and an escalation in the trade war between China and the U.S. will continue to drive gold higher after prices held critical support at $1,400 an ounce.
Comments by 14 market professionals:
93% - called for gold to be higher
7% - called for lower price
0% - saw neutral price
Comments by 870 respondents took part in Main Street poll:
62% - called for gold to rise
25% - predicted gold would fall
13% - saw neutral prices
In the last survey, Main Street and Wall Street were both bullish on prices for the week now winding down, Comex August gold futures were trading $1,458.30 an ounce, up 2.7% for the week.
Gold prices are ending the week at a fresh six-year high, recovering from a mid-week selloff after the Federal Reserve, as expected, cut rates by 25 basis points, but signaled that it wasn’t in a hurry to continue to cut rates.
Gold started its late-week rally after President Donald Trump announced on twitter that the government was imposing a 10% tariff on $300 billion in imported Chinese goods. This is on top of the 25% tariffs already targeting $250 billion in Chinese imports.
According to analysts, the ongoing trade war is one of the biggest factors for gold rally in the near-term.