Gold bulls boosted by Chinese tariffs and Fed

New York (Aug 23)  A dovish-enough Federal Reserve and a new salvo from China in the ongoing trade war generated new renewed optimism among  gold bulls, according to the Kitco News weekly gold survey.

Early Friday morning, it looked like gold would have its first losing week in a month. But the yellow metal rebounded sharply when China announced its counter tariffs, and Federal Reserve Chair Jerome Powell made dovish comments at Jackson Hole.

The late week rally has been enough to shift some last-minutes votes in this week’s gold survey.

“I was prepared to be neutral on gold until the Chinese tariffs rolled in this morning. Gold has more near-term upside and its longer term prospects have a solid foundation,” said Richard Baker, editor of the Eureka Miner Report said. “Gold's presence above the $1,500-level continues to be impressive given the backdrop of a very strong U.S. dollar* and muted inflation.”

This week 15 market professionals took part in the Wall Street survey. A total of 10 voters, or 67%, called for gold to be higher. The results showed that four participants, or 27%, anticipated neutral price action next week. There was one vote, or 6%, which called for lower prices next week.

Meanwhile, 866 respondents took part in an online Main Street poll. A total of 524 voters, or 54%, called for gold to rise. Another 183, or 25%, predicted gold would fall. The remaining 159 voters, or 21%, saw a sideways market.

KitcoNews