- Sentiment shows that gold bulls are in total control of the marketplace as the global banking crisis grows and the Federal Reserve will be unable to raise interest rates further, according to the latest Kitco News Gold Survey.
Sean Lusk, co-director of commercial hedging at Walsh Trading, said that he is bullish in the near term but also noted that $2,008 represents a 10% gain for the year, which could attract some profit-taking. Meanwhile, 896 votes were cast in online polls. Of these, 639 respondents, or 71%, looked for gold to rise next week. Another 152, or 17%, said it would be lower, while 105 voters, or 12%, were neutral in the near term.Main Street Bullish Bearish Neutral Sentiment in the gold market among retail investors is at its highest level in more than a year.
"The three US bank failures, plus Credit Suisse, has demonstrated clearly that one can't raise interest rates from zero in such an aggressive manner without something breaking. It would be fantasy to assume that these four banks are the only financial institutions on the brink. The response of the Fed and Swiss National Bank clearly shows that, when push comes to shove, central banks are going to do what central banks always do, that is, throw money at the problem.