Gold Rallies on Safe Haven Sentiment Along With USD https://www.kitco.com/news/2022-05-20/Uncertainty-rocks-equity-markets-but-boosts-bullish-sentiment-in-gold.html
Uncertainty rocks equity markets but boosts bullish sentiment in gold
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(Kitco News) - Bullish sentiment is starting to rise in the gold market as the precious metal is looking to end its four-week losing streak after bouncing off support below $1,800 an ounce.
The latest results of the Kitco News Weekly Gold Survey show that both Wall Street analysts and Main Street investors are solidly bullish on the precious metal next week. Not only has gold found some technical momentum after falling into oversold territory, but analysts note its safe-haven allure is once again shining bright.
Gold's rally this week comes as U.S. equity markets end their seventh consecutive week in negative territory. Wednesday, the S&P dropped 4%, seeing its worst one-day selloff since June 2020, when the global COVID-19 pandemic first roiled markets.
Phillip Streible, chief market strategist at Blue Line Futures, said that he is bullish on gold as investors look to hedge against further financial market weakness. He added that in the current environment, he sees gold and the U.S. dollar moving in tandem as safe-haven assets.
"Equity market conditions can still get a lot worse," he said. "There are signs that economic conditions in the U.S. are starting to deteriorate," he said.
U.S. equity markets have been deteriorating as rising inflation pressures take their toll on corporate earnings. At the same time, rising interest rates are tightening financial market conditions.
This week 16 Wall Street analysts participated in Kitco News' gold survey. Among the participants, 12 analysts, or 75%, called for gold prices to rise next week. At the same time, one analyst, or 6%, was bearish on gold in the near term, and three analysts, or 19%, were neutral on prices.
Meanwhile,1,003 votes were cast in online Main Street polls. Of these, 558 respondents, or 56%, looked for gold to rise next week. Another 243, or 24%, said lower, while 202 voters, or 20%, were neutral in the near term.