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Gold Survey: Survey Participants See Lower Gold Prices Next Week

Friday August 2, 2013 12:17 PM

(Kitco News) - Weaker gold prices are expected next week, despite the market’s rebound on Friday following a lower-than-expected U.S. jobs report, a majority of participants in the Kitco News Gold Survey said.

In the Kitco News Gold Survey, out of 36 participants, 21 responded this week. Of those 21 participants, six see prices up, while 11 see prices down and four see prices moving sideways or are neutral, meaning 28.6% were bullish, 52.4% bearish and 19% neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Last week, 57% of the market participants were bullish. As of noon EDT Friday, prices on the week were down about $10 on the week. As of July 26, survey participants have been correct five weeks in a row.

Those who see weaker prices said the lack of a strong upside trend leaves gold vulnerable to selling. Kevin Grady, owner of Phoenix Futures and Options, said he sees prices weaker next week. “I think the market place is setting up for the Fed announcing tapering in September…. I personally don’t believe they will taper in September, but you can’t trade that way. You have to trade on the perceptions of the marketplace and people are positioning for a September tapering,” he said.

Phillip Streible, senior commodities broker, R.J. O’Brien, said he expects prices to rise next week. “The reaction to the payroll number was a game changer for gold and put it back on the trader screens. We should see gold start trending higher again as the likelihood of the Fed tapering early has diminished,” he said.

The participants who are neutral or see prices moving sideways said thin market conditions could leave prices range-bound.


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

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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