Less bullishness by retail investors may lead to higher selling of gold

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(Kitco News) – Wall Street analysts are once again bullish on gold as the precious found technical support near $1,900; However, retail investor sentiment weakened as per the latest results of Kitco News Weekly Gold Survey.
There has been a turnaround in sentiment among Main Street investors as gold prices struggle to gain sustained bullish momentum against the US dollar. Last week, the US dollar index rose to 103.93, its highest level in nearly 20 years. The US dollar index is up 3.5% since falling below the 100 mark on April 19.
According to some economists, the US dollar gained strong momentum as the Federal Reserve prepares to raise interest rates by 50 basis points next week.
Meanwhile, at the same time, gold could not break above $2,000 and came under solid selling pressure, causing the price to drop by about 5%. However, some analysts are seeing signs of a turnaround in the market. The US dollar is declining from its highs on Friday, and gold manages to hold support above $1,900 an ounce.
Matt Simpson, Senior Market Analyst at Citi Index, said: “The dollar is looking very bullish. This could be a good sign for gold.” “Given that gold closed higher on Thursday despite a stronger dollar, it adds another level of confidence that its bearish moves are running out of steam. At least in the next term.”
This week 17 Wall Street analysts took part in Kitco News’ Gold Survey. Among the participants, nine analysts or 53% called for a rise in gold prices next week. At the same time, four analysts, or 25%, were bearish on gold in the near term, and three analysts, or 18%, were neutral on prices.
Meanwhile, an online Main Street poll polled 904 votes. Of these, 446 respondents, or 49%, looked for a rise in gold over the next week. Another 306, or 34%, said less, while 152 voters, or 17%, were neutral in the near term.

This is the first time since the end of September that the bullish sentiment has dipped below 50%. Although gold prices are below their lows, they end the week with a loss of 1%.
Looking ahead, the Federal Reserve’s monetary policy meeting remains the most important event for the precious metal. The Fed has indicated it is preparing to aggressively tighten its monetary policy.
David Madden, market analyst at Equity Capital, said the US dollar has slightly overtaken itself ahead of next week’s monetary policy decision. He added that any neutral or neutral tone from the central bank could send the US dollar lower, which could push gold prices higher.



Madden said the Federal Reserve cannot commit to a hike of more than 50 basis points.
“The last thing the Fed wants to do is make a policy mistake that pushes the economy into an early recession,” he said.
Adrian Day, president of Adrian Day Asset Management, said he is also looking for the US dollar to lose some ground next week.
“Monetary factors for gold are bullish, except for one thing: the timeliness or negligence displayed by major central banks outside the US is making the Federal Reserve almost responsible in comparison, boosting the dollar and weighing on gold. But the dollar May is peaking; and beyond that, monetary dynamism means gold is the only asset that can be trusted,” he said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those views Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article is not liable for damages and/or damages caused by the use of this publication.

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