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Gold Survey: Survey Participants Have Mixed Views On Gold's Direction Next Week

Friday December 6, 2013 11:53 AM

(Kitco News) - Participants in Kitco News’ weekly gold survey are divided over the direction for prices.

In the Kitco News Gold Survey, out of 34 participants, 19 responded this week. Of these, seven see prices up, while seven see prices down and five see prices sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

Last week, survey participants were evenly divided over gold’s direction. As of noon EST Friday, February gold on the Comex division of the New York Mercantile Exchange was down about $24 an ounce for the week.

Those who see prices rising next week said given that gold rallied following a solid November nonfarm payrolls report is a sign that bears’ grip on the market is growing tired.

“The past four weeks has been dominated by new short-sellers that forced some longs to flee positions. Combine that with the most bearish sentiment since the mid-October low, I look for gold to have a short-covering rally in its near-term future. I expect a $1,265 upside target during the week ahead,” said Ken Morrison, founder and editor of online newsletter, Morrison on the Markets.

A number of other market participants said they weren’t buying Friday’s rally, saying the overall trend for gold remains lower.

“I think the market will be lower next week. Although we are starting to see strong physical buying out of Southeast Asia, the Middle East and China the ETF (exchange-traded fun) selling that we are also seeing should be enough to offset the demand. The shorts are still in control even though we have seen some vicious short-covering rallies. We are seeing some strong economic data lately and I think that will add to the pressure in gold,” said Kevin Grady, president of Phoenix Futures and Options.

The participants who are neutral said they see the market consolidating in the current trend between $1,210 and $1,250.

Kitco Gold Survey

By Debbie Carlson of Kitco News dcarlson@kitco.com

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