Survey reveals expectation for price rises this week
Economic uncertainty and market volatility is maintaining gold’s position as a strong hedge.
Recent data reveals that outflows from gold-backed ETFs and similar products eased in July to US$2.3 billion (equivalent to a 34-tonne reduction in holdings), 39% lower than the previous month, helped by the higher price for the precious metal.
The World Gold Council stats show that the price of bullion was up almost 2.5% to $1,966/oz from $1,919/oz month-over-month pushing the total AUM for gold ETFs up to $215 billion.
Total outflows year-to-date are close to $5 billion with risk-on sentiment in the equities market reducing investor interest in gold.
However, sentiment is improving among retail investors according to the latest survey of Main Street and Wall Street analysts by Montreal-based Kitco.
Retail investors
Its weekly gold survey shows that retail investors are expecting gold prices to rise this week, although market analysts are less bullish ahead of further signals on the economy following US CPI and PPI data. Retail stats and FOMC minutes are among the key data due this week.
Of the 13 Wall Street analysts who participated in Kitco’s poll, four were bullish on gold, four were bearish, and five were neutral.
Among its 573 online voters, 56% expect gold prices to rise this week with 27% expecting lower prices, and 17% neutral in the near term. Retail investors are eyeing a price of $1,974/oz.
