Is the gold market oversold? Main Street investors say no

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Is the gold market oversold? Main Street investors say no gold bullish bearish

Editor's Note: Prices in the article were updated to reflect the late-day rally in gold as prices hit their highest level in three years.

Many analysts are bullish on gold this year as growing financial market turmoil will force the Federal Reserve to end its aggressive year-long tightening cycle as early as next week. Although analysts have said that gold is on the cusp of hitting a new all-time high this year, the market looks overbought.

Meanwhile, 707 votes were cast in an online Main Street poll. Of these, 445 respondents, or 63%, looked for gold to rise next week. Another 169, or 24%, said it would be lower, while 93 voters, or 13%, were neutral in the near term. Kevin Grady, president of Phoenix Futures and Options, said that gold looks good as the Federal Reserve is stuck. Although markets see a 73% chance that the U.S. central bank will raise interest rates by 25 basis points next week, Grady said that it could be a much tighter race than what expectations show.

 

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