Slim Majority See Higher Gold Prices Next Week

Friday March 09, 2012 12:13 PM

Editor’s Note: Mark your calendars! Kitco News is headed to PDAC 2012 in Toronto from March 4 -7, 2012. Stay tuned for news and video coverage from the conference.

Higher prices for are seen for gold next week by a very slim majority of survey participants in the weekly Kitco News Gold Survey.

In the Kitco News Gold Survey, out of 32 participants, 21 responded this week. Of those 21 participants, 11 see prices up, while six see prices down, and four are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Some of those who see higher prices next week think gold is due for a rebound following the recent break. “Gold prices should start to work their way higher again after the sharp selloff last week. It managed to hold the 200 day moving average and with continued tension with Iran it is being looked at as a safe haven currency again. Most of the weak longs have been washed out and shorts are facing ongoing concerns over geopolitical tensions,” said Phillip Streible, senior commodities broker, RJO Futures.

Mike Daly, gold and silver specialist with PFGBEST, said he expects gold to rise next week, but said he also is keeping an eye out for the March 13 Federal Open Market Committee meeting for any impact on gold. No change in the FOMC’s policy stance is expected, but market participants will parse the Fed’s statement for clues on the Fed’s thinking on the economy.

Technical chart analysts remain short-term bearish on gold, as several said. their chart patterns suggest a possible return to the $1,650 an ounce area after the recent break.

A few more are neutral on the market this week, waiting to see how the current short-term movements play out or see prices rangebound.

Kitco Gold Survey

By Debbie Carlson of Kitco News

Cecilia Tulikowski-Denison contributed to the survey.

Precious Metal Charts

Click to see this Precious Metal chart
  1. 24h
  2. 30D
  3. 60D
  4. 6M
  5. 1Y

Interactive Chart