Wall St. And Main St.: Gold To Shine During FOMC Week

New York (July 26)  Wall Street and Main Street both look for gold prices to climb next week, with the Federal Open Market Committee widely expected to cut U.S. interest rates, according to the weekly Kitco News gold survey.

Wall Street respondents cited a dovish Fed, technical-chart momentum in gold and the ability of the market to attract buying interest from fund managers on any price dips. However, many Wall Street respondents either look for either lower prices – saying a rate cut is already factored into the market, thus profit-taking may occur when the actual news occurs – or are neutral heading into what could be a volatile week for prices.

One key will be whether policymakers cut rates by 25 or 50 basis points, with the larger reduction more likely to result in price gains, observers said.

 Sixteen market professionals took part in the Wall Street survey. A total of eight voters, or 50%, called for gold to be higher. There were three votes, or 19%, for lower, while five respondents, or 31%, look for the metal to be sideways or were neutral.

Meanwhile, 953 respondents took part in an online Main Street poll. A total of 580 voters, or 61%, called for gold to rise. Another 223, or 23%, predicted gold would fall. The remaining 150 voters, or 16%, saw a sideways market.

KitcoNews