Kitco news: After three-straight weeks of gains, it seems that the gold’s bullish market and its buyers is reducing.
Last week was a volatile week for the precious metal as recession fears and new lows in bond yields drove investors from equity markets into safe-haven assets. However, the gold market ended Friday well off its six-year high.
Although sentiment, especially among Wall Street analysts, remains clearly bullish, but there are some cautions which show uncertainty in gold uptrend.
Comments by 17 market professionals took part in the Wall Street survey:
59% - called for gold to be higher
18% - called for gold to be lower
24% - saw gold prices trading sideways.
Comments by 1140 Main Street respondents: (Participation in the poll hit a fresh one-year high, a sign that retail interest continues to grow in the marketplace)
71% - called for gold to rise
15% - predicted for gold to fall
14% - saw a sideways market
In the last survey, Main Street and Wall Street were both bullish on prices for the week. They were right, as gold was trading $13.00 higher for the week so far at $1,521.30 an ounce.
For many analysts the main driver for gold going higher will be falling bond yields, a trend that is not expected to end anytime soon. According to many analysts, there is now a race to the bottom among global central banks after the Finnish central bank governor, Olli Rehn, raised the prospect of new easing measures from the ECB.