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Gold Survey: Survey Participants Bullish On Gold Prices For Next Week

Friday September 06, 2013 12:30 PM

(Kitco News) - Gold prices could rise next week, supported by the potential for U.S. military strikes against Syria and on ideas that the tapering of the Federal Reserve’s bond-buying program is not a done deal, according to a majority of survey participants in the weekly Kitco News Gold Survey

In the Kitco News Gold Survey, out of 36 participants, 20 responded this week. Of those 20 participants, 13 see prices up, while six see prices down and one is neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Last week, slightly more than half of the market participants were bullish. As of noon EDT Friday, prices were down about $9 on the week. As of Aug. 23, survey participants have been correct three of the past five weeks.

Many survey participants said they turned bullish gold following a surprisingly weak U.S. August nonfarm payrolls report.

Others said gold prices are finding support from concerns about Syria. At the very least, they said, the simmering tensions are keeping prices from falling.

Kevin Grady, owner, Phoenix Futures, said he’s expecting stronger gold prices next week. “The horrible miss on the jobs number along with the July revisions are bullish. If you throw in the situation in Syria you could have a late day pop today. I would not want to go home short with embassies being evacuated,” he said.

Those who see prices weaker said they were disappointed gold didn’t get back to about $1,400 an ounce on Friday. Adam Klopfeinstein, market strategist with Archer Financial Services, said while gold could rally next week, he doesn’t see gains holding as traders use the rally as a selling opportunity.

“By the end of next week I think prices close lower than here,” he said.

Kitco Gold Survey

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

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