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Survey Participants See Higher Prices Next Week For Gold

Friday October 5, 2012 12:05 PM

Gold prices are expected to rise next week as momentum propels the market higher, say a majority of participants in the Kitco News weekly Gold Survey.

In the Kitco News Gold Survey, out of 33 participants, 23 responded this week. Of those 23 participants, 18 see prices up, while three see prices down, and two are neutral or see prices moving sideways. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Given the strength in gold this week, expectations by the majority of survey participants are that gold may try to target and take out the $1,800-an-ounce level next week.

“Clearly the momentum is with gold now, and people who were waiting for a more significant decline—and there were many—are racing to catch up,” said Adrian Day, chairman and chief executive officer, Adrian Day Asset Management.

Those who see weaker prices next week or are neutral on gold’s price said since the yellow metal couldn’t break through $1,800, it might be due for a correction in the short term.

“With gold near $1,800, the price area it has failed to sustain on two prior occasions February 2012 and November 2011, and speculative net-long positions at elevated levels, gold is likely to fail on its current attempt to successfully break the $1,800 barrier without first a correction to the downside. I expect a pullback to at least $1,750 in the week ahead,” said Ken Morrison, founder and editor of online newsletter Morrison on the Markets.

Kitco Gold Survey

By Debbie Carlson of Kitco News dcarlson@kitco.com

Follow me on Twitter! If you want to keep up with metals news and features, then follow me on Twitter. It's free, too. My account is @dcarlsonkitco .

Allen Sykora contributed to this survey.

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