Where is gold headed? Kitco fills us in…
So, has Kitco sentiment suddenly become a good positively correlated indicator on gold bullishness or is it still a good contrary one? I am curious.
“This week, Kitco’s online survey received 1,085 votes, of which 829, or 77%, were in the bullish camp for next week. The remaining 175 participants, or 16%, say they are bearish, while the other 81, or 7%, say they are neutral. Votes tallied for this survey start from Wednesday morning until Friday at 9:30 a.m. Eastern time.”
Bullish Gold Calls Post-ECB, Ahead of Fed
“The Fed meeting with no interest rate hike encourages the bulls and implies more stimulus on the way,” argued Mark Leibovit, editor of the VR Gold Letter.
The bulls have been encouraged since early January.
Veteran gold strategist George Gero of RBC Capital Markets said he expects volatility ahead of the Fed as investors focus on rate expectations and the dollar.
Sounds good.
Henry To from CB Capital Partners also focused on the dollar. “The fact that the U.S. dollar cannot sustain a rally lasting more than an hour after the ECB meeting tells me that gold will likely continue to rally for the rest of this year,” he said. He also highlighted investor interest in gold, noting that most investors are still out of the market, which means the positive momentum should continue to run for the foreseeable future.
How Henry, do you extrapolate what happened during an emotional, hype filled hour post-ECB to gold rallying for the rest of the year?
“Fear is hiding out in dark corners, not leaving the scene,” said Richard Baker, editor of the Eureka Miner Report. For that reason, he told Kitco News that he remains bullish on gold this year and has a price target of $1,290 an ounce for the week ahead.
The ‘fear’ bid, which I would re-label as the ‘waning confidence’ bid.
