Most participants in the Kitco News Gold Survey are calling for gold prices to rise next week, based on this week’s strong performance.
In the Kitco News Gold Survey, out of 33 participants, 26 responded this week. Of those 26 participants, 21 see prices up, while three see prices down, and two are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Many of the survey participants who see higher prices for next week cite gold’s rebound since Wednesday’s Federal Open Market Committee meeting. Initially gold prices fell when the FOMC did not announce any new stimulus program, but prices rallied after traders realized the Fed is open to other measures down the road and that rates are already ultra-low.
Technical-chart patterns are considered supportive for a rise for gold next week. Spencer Patton, founder and chief investment officer of Steel Vine Investments, echoed what several survey participants said. “Gold has tested support more than four times around $1,620 and bounced strongly each time. It's time that gold tests $1,700,” he said.
The U.S. dollar is also a factor in gold, said Ira Epstein, director of the Ira Epstein division of The Linn Group. Gold has had a “technical breakout to the upside. As long as the U.S. dollar stays under pressure, gold will respond in a positive manner,” he said.
Those who see weaker prices said the euro will likely weaken again versus the dollar, which will cap any rallies in gold.
Those who are neutral on gold said they sit on the sidelines waiting for a stronger trend to develop.
Source : kitco.com
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