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Gold Survey: Survey Participants Look For Steady To Higher Gold Prices Next Week

Friday February 22, 2013 12:30 PM

Most participants in Kitco News’ weekly gold survey said they look for gold prices to either stabilize or bounce next week after hitting their lowest levels since last summer on Thursday.

In the Kitco News Gold Survey, out of 33 participants, 21 responded this week. Of those, 11 see prices up, seven see prices sideways and three look for the recent slide to resume next week. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

Many cite potential for a short-term technical bounce from “oversold” conditions and as major chart support holds. Some also caution that any soft U.S. economic data next week could revive gold on ideas that quantitative easing might not end as soon as some may fear, plus some see potential for safe-haven buying to re-emerge if it appears automatic U.S. budget cuts will go into effect if Congress remains deadlocked ahead of the March 1 deadline.

“Rally on at least a technical bounce back to $1,623,” said Mark Leibovit, editor of the VR Gold Letter, of his expectation. “We may have hit a bigger bottom, especially with bearish sentiment so great, but I don't as of yet have technical (volume) confirmation of that possibility.”

Others look for a bounce from chart support but not necessarily a big rally either.

“The market may very well test $1,525-$1,530 monthly support, but I suspect that it will bounce and hold those levels and essentially close next week unchanged,” said Ralph Preston, principal with Heritage West Financial.

Kitco Gold Survey

By Allen Sykora of Kitco News; asykora@kitco.com

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