Gold prices are expected to continue to press at least slightly higher next week, according to a majority of participants in the Kitco News weekly gold survey. Participants who see higher prices said given the strength in commodities in general and gold's sustained move over $1,300, they expect the gains to continue.
By Debbie Carlson
8/09/2013 @ 12:24PM
Following a solid rally and move over $1,300 an ounce, gold prices are expected to continue to press at least slightly higher next week, said a majority of participants in the Kitco News weekly gold survey.
In the Kitco News Gold Survey, out of 36 participants, 18 responded this week. Of those 18 participants, 12 see prices up, while 2 see prices down and four see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Last week, more than half of the market participants were bearish. As of noon EDT Friday, prices on the week were up about $5 on the week. As of July 29, survey participants have been correct three of the past five weeks.
Participants who see higher prices said given the strength in commodities in general and gold’s so-far sustained move over $1,300, they expect the gains to continue.
Mark Leibovit, editor of the newsletter VR Gold Letter, said he is “bullish based on (Thursday’s) action. (There was) positive upside volume. If we can break about $1,346, there’s a near-term shot at $1,500,” he said.
Several who said they were neutral or saw prices moving sideways said gold will likely remain range-bound, but could test the upper end of the range.
Jeffrey Nichols, managing director, American Precious Metals Advisors, and adviser to Rosland Capital, said gold remains range-bound, with support coming from physical demand, but pressure from technical-chart related selling. “So it would seem, gold remains range-bound, though perhaps within a gradually narrowing range. Gold prices are still in a lengthy ‘bottoming phase’ and may have more work – technically speaking – before breaking through overhead resistance and moving substantially higher,” he said.
He forecast prices moving to the upper end of the trading range, with a chance to break out.
Those who see weaker prices said gold prices could dip back down under $1,300 next week.
“The debate on tapering of U.S. bond buying affects gold price volatility but more troubling is the continued erosion of its value relative to equities and key commodities. This is likely to continue given a backdrop of global monetary easing – even with eventual tapering by the U.S.,” said Richard Baker, editor of the Eureka Miner newsletter.
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