Wall St. & Main St. bullish on gold price as coronavirus threat grows

New York (Jan 24)  The gold market is struggling to find momentum as it treads water around a critically important technical area; however, sentiment in the marketplace is still significantly bullish among both Main Street investors and Wall Street analysts.

According to comments from analysts in the Kitco News weekly gold survey, financial uncertainty, driven by the unknown impact of the rapidly spreading coronavirus will continue to supporting safe-haven demand for the precious metal.

Many economists are worried that the spread of the virus through China will lead to slower economic growth, which could have global implications.

“Gold typically rises on geopolitical risks and other surprising and uncontrollable risks. The coronavirus is likely to be a driving force for higher gold prices,” said Kristina Hooper, chief investment strategist at Invesco.

This week, 18 market professionals took part in the Wall Street survey. Ten, or 59%, called for gold to rise. There were only two votes or 12% saying gold would fall; five voters, or 19%, were neutral or called for a sideways market.

Meanwhile, 789 votes were cast in an online Main Street poll. A total of 525 voters, or 67%, looked for gold to rise in the next week. Another 145, or 18%, said lower, while 119, or 15%, were neutral.

KitcoNews