The deepening crisis in Ukraine will continue to boost safe-haven demand for gold though any evidence of a resilient U.S. economy in this week’s key scheduled data releases may erode prices, CNBC’s weekly sentiment survey showed.
“We have been warning about the headline risk out of the Ukraine for some time now, something we felt the bears should not get too complacent about,” said Edward Meir, an analyst at INTL FCStone in New York. “We would prefer to tip our trading books towards the long side in gold.”
Just over half of the respondents in CNBC’s weekly survey (51 percent) agree with Meir, saying the price of gold will rise this week. Reinforcing the bullish view of CNBC’s poll, the latest data from IG Markets shows 81 percent of their more than 501 clients with open positions expect gold prices to advance.