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Gold Survey: Higher Prices Expected For Gold Next Week

Friday August 30, 2013 12:10 PM

(Kitco News) - Higher prices are expected for gold next week, with a slight majority of participants in the Kitco News Gold Survey citing supportive technical charts.

In the Kitco News Gold Survey, out of 36 participants, 22 responded this week. Of those 22 participants, 11 see prices up, while nine see prices down and two see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Last week, more than half of the market participants were bullish. As of noon EDT Friday, prices on the week were up about $7 on the week. As of Aug. 16, survey participants have been correct three of the past five weeks.
Market participants who see weaker prices cited gold’s inability to build on its mid-week gains.

“I’m bearish for next week. We had a rally on the Syria concern, some flight to quality, but it didn’t last. We couldn’t bounce on this equity sell-off. We tried to test $1,450 but it failed, so I see this market rolling over,” said Adam Klopfeinstein, market strategist with Archer Financial Services.

Those who see higher prices listed several factors including the potential for escalation in the Syrian conflict and upward momentum.

“The trend on the weekly chart remains up with technical resistance for the December contract still at $1,422.30,” said Darin Newsom, DTN senior analyst.

The few participants who see prices holding in a sideways range said they expect activity to remain quiet ahead of the key August nonfarm payrolls report.

Kitco Gold Survey

Allen Sykora contributed to this survey.

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

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