Kitco News – Investors act cautiously in gold market as Wall Street analyst increase their bearish outlook ahead of this week’s Federal Reserve monetary policy decision.
The latest Kitco News Gold Survey shows that there is no clear consensus among market analysts as some see potential for the Federal Reserve to be less dovish than markets’ forecast in using of easing policy.
Although the Federal Reserve is expected to cut rates this week, many analysts are not expecting a strong dovish signal from the Fed, which could limit support for higher gold prices. Therefore, the gold prices can rise.
Comments by 17 market professionals:
47% - called for gold to be higher
29% - saw lower prices
24% - saw sideways price action.
Comments by 1,500 respondents:
61% - called for gold to rise
23% - predicted gold would fall
16% - saw a sideways market.
In the last survey, Main Street and Wall Street were both bullish on prices. While gold prices closed in negative territory previous week.
This is the third consecutive week of losses for the gold market.
Wall Street and Main Street both have been right 55% of the time.