Higher Gold Prices Seen For Next Week – Survey Participants

Friday September 02, 2011 12:35 PM

Gold prices are expected to rise next week as most participants in Kitco News’ Gold Survey cite the continued economic turmoil to support firmer values.

In the Kitco News Gold Survey, out of 34 participants, 25 responded this week. Of those 25 participants, 20 see prices up, while two see prices down, and three see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.

Worries in Europe and a dismal monthly U.S. jobs report have helped to spur prices back to the upper $1,800s level on Friday and most participants expect these concerns to continue to underpin gold prices.

They also said the market will be looking forward to President Barak Obama’s speech on Thursday, when he is supposed to lay out a jobs plan. Participants aren’t sure if it will have the effect the president hopes it will. “What can he say that will boost confidence,” one participant asked.

Darin Newsom, Telvent DTN senior analyst, said the technical-chart picture for gold favors a move higher in the short term. “After consolidating this week, as expected, within last week’s trading range the December (futures) contract looks to close near its weekly high and within striking distance of its all-time high of $1,917.90. Look for the contract to extend its rally next week, moving to a new high early. However, there aren’t a great deal of big economic reports to keep the fire lit so a late week fall back from new highs would not be that surprising,” he said.

Those few participants who saw unchanged or weaker prices said given the rebound from the lows touched in late August, gold again is vulnerable to a break unless there is a fresh development to push it higher. Some of those who see unchanged expect a volatile trade that ultimately could keep prices range bound.

Kitco Gold Survey

By Debbie Carlson of Kitco News dcarlson@kitco.com

Cecilia Tulikowski-Denison and Alexander Létourneau contributed to the survey.

Editor’s Note:

Kitco News will provide readers with comprehensive print and video coverage of three-major precious metals market events in New York, Toronto and Montreal during the next two weeks.

First, Kitco News will supply live coverage on Wednesday, Sept. 14, of the CPM Platinum Group Metals Seminar in New York. That will be followed by the Toronto Resource Investment Conference September 15-16, and then the London Bullion Marketing Association meeting in Montreal September 18-20.  

The CPM Group's Platinum Metals Group Seminar Sept. 14 will showcase presentations from some of the leading analysts and investors in the PGM sector. Register to watch the CPM Platinum Group Metals Seminar Live (Free Registration): http://cpmevents.kitco.com/

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