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Gold Survey: Mixed Outlook For Gold Survey Direction Next Week – Survey Participants

Friday February 1, 2013 12:08 PM

For the second week in a row, opinions are split on the direction for gold prices for the coming week, with no majority view surfacing.

In the Kitco News Gold Survey, out of 33 participants, 26 responded this week. Of those 26 participants, 12 see prices up, while four see prices down, and 10 see prices moving sideways. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Many of those who see higher prices point to the underlying support for the metal. “The market is realizing that monetary ease will continue in most countries, including the U.S., and this is positive for gold,” said Adrian Day, president of Adrian Day Asset Management.

A few others also pointed to gold holding support at the bottom of its recent range, which comes in around $1,650. They suggested after testing the lows, gold could drift up to test $1,700, but none expected the market to break through that level.

Those who see prices moving sideways or are neutral said there’s little to push the market out of its trading range. Rich DeFalco, principal, 76 Capital Partners, said in the near-term he’s neutral on prices.

“A dramatic increase in the price of the precious metal has been postponed but not abandoned. Demand for safe havens is not quite there, and inflation isn't a great danger. (The) job report was uneventful today and comes with conflicting signs of an overall recovery. There has been strength in the housing market, but the debate over government spending continues,” he said.

The few survey participants who see weaker prices said the inability to break through $1,700 is setting up gold to make a run at support.

“Continued technical weakness and low inflation continue to wear on the market. The market needs a good selling climax before we can even think about going higher,” said Sterling Smith, futures specialist, commodity research, Citibank Institutional Client Group.

Kitco Gold Survey

Allen Sykora contributed to this survey.

By Debbie Carlson of Kitco News dcarlson@kitco.com

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