Gold Prices Expected To Rise Next Week; $1,800/Oz Possible Target – Survey Participants

Friday February 24, 2012 12:09 PM

Most participants in the weekly Kitco News Gold Survey are expecting gold prices to rise next week, with $1,800 an ounce a possible upside target.

In the Kitco News Gold Survey, out of 32 participants, 24 responded this week. Of those 24 participants, 19 see prices up, while three see prices down, and two are neutral on prices. Market participants include bullion dealers, investment banks, futures traders, money managers and technical chart analysts.

Many of the survey participants cite the heightened saber-rattling between Iran and the Western nations as their reason to see gold prices rise.

“Increasing tensions with Iran could send both oil and gold much higher and copper lower. Given present trends, $135 per barrel Brent crude is compatible with $120 per barrel WTI (West Texas Intermediate) crude, $2,000+ per ounce gold and $40+ per ounce silver,” said Richard Baker, editor of the Eureka Miner.

Others suggested technical chart reasons, that the recent upward momentum will continue to lift gold.

Those who see weaker or are neutral both said that gold might struggle in its attempt to recapture the $1,800 level which tempers their outlook.

Those who look for prices to pull back do not expect a sharp break, but more of a correction in values. “The gold market has steadily been going up without there being a correction… and the lack of physical flow will probably send gold down; it will be a good opportunity for the market hunters to buy gold before it goes up again,” said Afshin Nabavi, head of trading at trading house MKS Finance.

Finally, many survey participants said if the tough talk between Iran and the West starts to cool, gold will inevitably retrace this current rally.

Kitco Gold Survey

By Debbie Carlson of Kitco News

Cecilia Tulikowski-Denison and Alex Létourneau contributed to the survey.

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