Survey Participants Neutral On Gold Market Ahead Of Year End

Friday December 23, 2011 12:09 PM

With the 2011 ending and a shortened trading session to boot next week, most participants in Kitco News’ Gold Survey are neutral on gold prices.

In the Kitco News Gold Survey, out of 32 participants, 20 responded this week. Of those 20 participants, seven see prices up, while three see prices down, and 10 are neutral on prices. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.

Participants who are neutral on gold prices next week said they’ve taken to the sidelines ahead of the year’s end because a shortened trading week and light volume can skew price trends. Policy makers in the U.S. and Europe are unlikely to do anything next week that will influence direction and since headlines have been driving price, the market may take a breather.

Those who look for higher prices said with the liquidity injections lately and a bounce off the lows under $1,600 an ounce holding so far, prices might drift higher next week. Book squaring ahead of the year’s end also might give some support to gold.

Those who look for weaker prices said the failure of gold to close above the 200-day moving average is negative from a technical chart perspective and that could weigh on prices. The lower than average volume as the markets head into the last week of the year might also weigh on prices.Kitco Gold Survey

By Debbie Carlson of Kitco News dcarlson@kitco.com

Alexander Letourneau contributed to the survey.

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