Gold market optimism wanes as analysts and retail investors see limited upside

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Bulls or Bears? Wall Street vs. Main Street puts together leading analysts and regular metals investors to find out where they think gold is headed next week. Picked up and quoted by other leading news organizations, this feature has become a cornerstone for the industry and an indicative benchmark.

- Gold trended downward this week, with prices falling around 1% after the Labor Day holiday in what proved to be a slow week for economic data and market-moving events.

On the other hand, Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, likes what the charts are telling him. The most significant economic data for gold traders in the coming week are U.S. CPI and PPI for August, released on Wednesday and Thursday, respectively. Market participants will also be watching U.S. retail sales for August and the ECB’s rate decision, both of which are slated for release on Thursday morning.

Marc Chandler, Managing Director of Bannockburn Global Forex, believes gold prices could break either way next week."I had thought Gold was poised to increase this past week as it was flirting with the $1950 area a week ago," he said."However, the strong dollar and firm rates pressured the yellow metal back to around $1915.35 ."

"Right now, the bond market is in charge of every other market," he said."It's almost tick for tick, with stocks and everything. Yields go up, everything else goes down. But I think rates have been artificially pushed up early in the month by corporate rate-loss selling, and that will unwind as corporate debt is issued and pulls yields back down, which should translate into higher gold prices.

 

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