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Major Of Survey Participant See Gold Rising Next Week

Friday March 30, 2012 12:09 PM

Higher prices are expected in the gold market next week, according to a survey of participants in the weekly Kitco News Gold Survey.

In the Kitco News Gold Survey, out of 32 participants, 22 responded this week. Of those 22 participants, 13 see prices up, while six see prices down, and three are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Several of those looking for higher prices next week cited technical chart factors. Mark Leibovit, editor of VR Gold Newsletter, said he favors gold, in part based on the calendar.

“Seasonal trends into May are positive, so I'm giving the upside the benefit of the doubt,” Leibovit said.

Phil Streible, senior commodities broker at R.J. O’Brien, also offered a firmer outlook based on technical charts. “Gold prices should start to rally after holding key levels at $1,650 and $1,635, we would expect resistance near $1,680 the 200-day moving average and $1,700 (the psychological level),” he said.

Those who see weaker prices said the continued lack of physical demand is putting weight on prices. The Indian jeweler strike persists and Chinese buying has been lackluster, analysts said. Further, with no bullish news to drive investors into gold, the metal could soften further.

The few neutral participants are staying on the sidelines, looking for a trend to be established.

Kitco Gold Survey

By Debbie Carlson of Kitco News dcarlson@kitco.com

Cecilia Tulikowski-Denison contributed to the survey.

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