Strong bullish sentiment in gold points to higher prices following critical breakout rally

New York (Nov 15)   Sentiment in the gold market has turned significantly bullish as the precious metal sees its best weekly gain in six months.

This week gold prices broke their current downtrend. They pushed to a five-month high as inflation fears flooded back into the market after the U.S. Consumer Price Index showed an annual rise of 6.2%, the highest reading in more than 30 years.

"A lot of investors have been waiting for this. Gold did exactly what it was supposed to do, which is protect investors from rising inflation," said Philip Streible, chief market strategist at Blue Line Futures.

December gold prices last traded at $1,865.80 an ounce, up nearly 2.7% for the week.

This week 18 Wall Street analysts participated in Kitco News' gold survey. Among the participants, 15 analysts, or 83%, called for gold prices to rise next week. At the same time, two analysts, or 11%, were bearish on gold in the near term, and one analyst or 6% was neutral on prices.

Meanwhile, A total of 1,018 votes were cast in online Main Street polls. Of these, 722 respondents, or 71%, looked for gold to rise next week. Another 165, or 16%, said lower, while 131 voters, or 13%, were neutral.

KitcoNews