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Gold Survey: Split Views On Gold Price Direction Seen In Gold Survey

Friday March 1, 2013 12:08 PM

There is no clear majority on the direction of gold prices for next week, as survey participants in the weekly Kitco News Gold Survey differ in their view of where the yellow metal’s price might travel.

In the Kitco News Gold Survey, out of 33 participants, 29 responded this week. Of those 29 participants, 13 see prices up, while eight see prices down, and eight see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Those who see higher prices said gold could be forming a potential bottom around the $1,550s, which if it holds, could portend higher prices. Others cited physical buying and the continued underlying support of ultra-loose central bank monetary as supportive for prices. Ideas that the gold market has reached a good value area have others suggesting a price rebound.

“With bullish sentiment reaching historically low levels … futures hitting multi-month lows (and) mandatory government spending cuts activated, I would expect bargain hunters to start searching for a bottom and a sharp recovery to develop into the market,” said Phil Streible, senior commodities broker at RJO Futures.

Participants who see weaker prices cite the market’s inability to hold over $1,600 an ounce and the bearish short-term technical chart picture for gold.

Those who are neutral or see prices trading sideways said they want to watch to see how the market develops as it trades under $1,600, especially as sentiment in the market remains negative and equities grab the headlines and investor interest.

“Technically gold remains in the negative mode; however, the $1,550 level is the beginning, we believe, of a base-building process. For this coming week we expect to see more two-way action and broad trading range,” said Adam Hewison, president and chief strategist with INO and MarketClub.com.

Kitco Gold Survey

Allen Sykora contributed to this survey.

By Debbie Carlson of Kitco News dcarlson@kitco.com

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