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Friday November 23, 2012 12:12 PM
Participants who took part in the weekly Kitco News gold survey are bullish for next week.
Out of 34 participants, 19 responded this week—less than usual with many away for an extended U.S. Thanksgiving holiday weekend. Of those who replied, 14 see prices up, while one sees prices down and four see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.
“I think ultimately the market will come to more of a realization that monetary policy is going to continue to be quite loose, and we will be talking more about central-bank buying and things of that nature,” said Bart Melek, director of commodity strategy for TD Securities. He cited news this week showing that Brazil was a noted buyer in October, based on International Monetary Fund data.
“Despite the apparent truce in Gaza, removing a geopolitical factor favoring gold, the monetary situation remains firmly positive,” said Adrian Day, president of Adrian Day Asset Management.
One trader also cited a recently softening tone in the U.S. dollar, with dollar index falling below the 20-day, 100-day and 200-day moving averages this week.
By Allen Sykora of Kitco News; firstname.lastname@example.org