Editor's note: Catch the Latest Happenings with Kitco Video News!

Higher Prices Seen For Gold Next Week – Survey Participants

Friday May 25, 2012 12:01 PM

Most participants in the weekly Kitco News Gold Survey are bullish, calling for gold to rise above current levels next week.

In the Kitco News Gold Survey, out of 33 participants, 23 responded this week. Of those 23 participants, 15 see prices up, while five see prices down, and three are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Last week was one of the heaviest bullish sentiments the survey has seen in recent months and despite price being down on the week, bulls are undeterred. Bulls aren’t as certain as they were last week, but they hold a definite majority.

Several who see higher prices echoed the view of Adrian Day, chairman and chief executive officer of Adrian Day Asset Management. “The recent decline is well overdone.  Any likely scenario for how the euro debt crisis evolves—whether helping Greece to stay in the Euro or a messy departure—will involve more easy money from the ECB (European Central Bank) and that will be positive for gold,” he said.

Additionally, technical-based analysts said the market’s ability to hold the $1,520 an ounce area is a supportive sign for prices. Most target a retest of $1,600 for next week.

Those who see weaker prices said the continued uncertainty regarding the eurozone and the Greek elections in a few weeks leaves the financial industry as a whole on edge and that can bode poorly for gold, which is not acting as a safe haven.

The participants who are neutral on prices said gold is likely to stay range-bound, especially if it cannot crack the ceiling that’s forming at the $1,600 level.

Kitco Gold Survey

By Debbie Carlson of Kitco News; dcarlson@kitco.com

Allen Sykora contributed to this survey.

Precious Metal Charts

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

Interactive Chart