Higher Prices Seen For Gold Next Week – Survey Participants

Friday September 23, 2011 12:22 PM

Gold prices are expected to rise next week, according to participants in Kitco News’ Gold Survey, but the tally was far from unanimous.

In the Kitco News Gold Survey, out of 34 participants, 23 responded this week. Of those 23 participants, 12 see prices up, while 10 see prices down, and one sees prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.

Survey participants who see higher prices said gold was caught up in the mass move to sell all assets and that the cheaper prices will be a lure to bargain hunters.  The break in price from last week’s futures settlement of $1,814.70 was too heavy.

“The sell off is overdone.  I expect back and forth for the next few weeks, but a bounce is in order now.  The market had gone too far too fast, and was disappointed by Uncle Ben’s new ‘twist’ program, but the fundamentals of destruction of fiat currencies remain,” said Adrian Day, chairman and chief executive officer of Adrian Day Asset Management.

Survey participants who see weaker prices cite the continued de-leveraging action in all financial markets and bearish short-term technical charts, with some suggesting losses could go as low as the high $1,500 to low $1,600s. The respondent who said prices could be unchanged cited an attempt by gold to build a base as these newer, lower levels.

By Debbie Carlson of Kitco News dcarlson@kitco.com

Cecilia Tulikowski-Denison contributed to the survey.