Survey Participants See Higher Prices For Gold Next Week

7:18 PM

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Survey Participants See Higher Prices For Gold Next Week
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Most participants in Kitco News’ weekly Gold Survey expect to see higher gold prices next week, suggesting seasonal trends and a better sentiment regarding the U.S. and the European Union will support prices.

In the Kitco News Gold Survey, out of 34 participants, 25 responded this week. Of those 25 participants, 21 see prices up, while three see prices down and one sees prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts

Several of the participants who see higher prices said stabilization for the near-term in Europe, now that Slovakia passed the European Financial Stability Facility, and better-than-expected economic data are allowing the U.S. dollar to retreat and gold to trade as a “risk-on” asset.

Also, several pointed out that Indian festivals are getting underway and they expect buying from that nation to be a price support, particularly on any breaks in value.

Those who see weaker prices said the rally in the stock market – which has also enabled gold to rise – is getting out of hand. If stocks stumble, the gold will trip and prices could sink. Others pointed out the lackluster volume in gold futures as a sign that the metal’s price could have trouble climbing unless new buyers step in.

Another participant pointed out that gold seems to be range-bound, finding support around $1,650 and resistance around $1,700. Unless the market can find some news or event to allow it to break out from those boundaries, gold could just be stuck in a $50 range.....READ MORE