Expect more volatility in gold price as sentiment shows no clear bias

New York (Sept 25)  Investors should not expect the rise in volatility in the gold space to end anytime soon as near-term sentiment shows no clear bias in the marketplace, according to the latest Kitco News Weekly Gold Survey.

   “There is so much uncertainty and volatility that markets are going to be messy for a while,” said Afshin Nabavi, head of trading with MKS (Switzerland) SA. He added that he is not just neutral on gold but sitting on the sidelines waiting for a cleaner trend to emerge.

Among Wall Street analysts it was nearly a three-way tie for where prices could go next week with the bullish votes taking a narrow lead. Among 16 participants, six voters, or 38%, called for gold prices to rise; the call for lower prices next week or sideways movement each received five votes or 31%.

Sentiment is only slightly clearer among retail investors. At total of 2391 votes were cast in online Main Street polls. 1,207 voters or 50% said they were bullish on gold next week. Another 822, or 34%, said they were bearish, while 362 voters, or 15%, were neutral.

KitcoNews