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Gold Survey: Higher Prices Forecast For Gold Next Week

Friday January 10, 2014 12:03 PM

(Kitco News) - Gold’s rise Friday could continue into next week, with a majority of participants in the weekly Kitco News Gold Survey forecasting higher prices.

In the Kitco News Gold Survey, out of 33 participants, 23 responded this week. Twelve see prices up, while five see prices down and six see prices trading sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

Last week participants were bullish. As of noon EST, February Comex gold prices were up $4.60 on the week.

Prices rose after a weaker-than-expected nonfarm employment report from the U.S. Department of Labor showed only 74,000 jobs were created, versus about 200,000 expected.

Charles Nedoss, senior market strategist with Kingsview Financial, said gold is attempting to take out some important technical chart resistance as it trades near $1,250 an ounce.

“I think we could be sideways to a little higher next week. Gold is developing a little momentum,” he said. “But we have to clear $1,250 to bring a little sponsorship and more volume in this market. If we can’t do it by early next week, then I think the market turns (to the) sellers.”

Those who see weaker prices said the buying gold has enjoyed in the first two weeks of 2014 is unlikely to last.

“Reallocation of commodity tracking funds should be complete by mid week. Funds that needed to buy gold via the reallocation will have done so, removing a bullish prop,” said Ira Epstein, director of the Ira Epstein division of The Linn Group, referring to the index rebalancing that is currently occurring in all commodities.

Several participants said they are neutral on the market or expect prices to hold in a range.

“Fundamentally I’m bearish, but it’s very hard to trade here with the market in a range. You just get chopped up. I think eventually we test the lows of $1,100, but it’s a question of when. Right now the funds buy on dips and sell on rallies. So I’m (neutral),” said a bullion dealer at a North American bank.

Kitco Gold Survey

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



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