Survey Participants See Gold Prices Rising Next Week

Friday March 02, 2012 12:17 PM

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Bullish traders continue to dominate the Kitco News Gold Survey, as a majority of survey participants expect prices to rise next week.

In the Kitco News Gold Survey, out of 32 participants, 22 responded this week. Of those 22 participants, 14 see prices up, while six see prices down, and two are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Those who see higher prices next week remain confident the trend for gold continues to be higher, despite the sharp break in values this week.

“Worldwide economic and political factors have not changed,” said Carlos Perez-Santalla, precious metals broker, PVM Futures, who sees prices up next week.

Several also said the break in gold this week was healthy for a market that was in need of a price correction, given that values had not retreated much at all since 2012 started.

There is some caution with a few people who expect higher prices next week. Several said they want to see gold holding support at the $1,680 to $1,700 area in order to build a floor to eventually target the $1,800 level again.

Those who see weaker prices next week generally point to technical charts for that view. The break in prices has turned them short-term bearish. One participant who expects weaker prices – and was one of the few bears last week – said the fall in values was similar to the break of the uptrend support in early December that eventually took gold from $1,750 to $1,550.

Adam Hewison, president and chief strategist with INO and MarketClub.com, said all of his technical chart indicators are negative on gold. “We are looking for this market to hit $1,650 by the end of March. This would be a 61.8% Fibonacci retracement level and an important cyclic low for gold,” Hewison said.

Participants who are neutral on gold said the market is preparing for its next move and will likely be rangebound.

Kitco Gold Survey

By Debbie Carlson of Kitco News dcarlson@kitco.com

Cecilia Tulikowski-Denison contributed to the survey.

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