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Survey Participants Split Over Gold Direction Next Week

Friday March 7, 2014 12:02 PM

(Kitco News) - Participants in the Kitco News Gold Survey are split in their views on price direction for gold next week. Nominally participants see higher prices, but the group doesn’t have a simple majority.

In the Kitco News Gold Survey, out of 33 participants, 21 responded this week. Ten see prices up, while six see prices down and five see prices trading sideways or neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

Last week, most participants were bearish. As of noon EST, Comex April gold prices were up about $14 an ounce on the week.

Those who see higher prices said gold’s trend remains upward.

“Trend remains up, so path of least resistance is the same,” said Jim Wyckoff, technical analyst at Kitco.

Mark Leibovit, editor VR Gold Letter, said he also sees higher prices next week.

“(I’m) liking platinum and palladium more than gold, but will still give gold the benefit of the doubt for further gains, especially (if) a currency war could be unfolding between Russia and the U.S.,” he said, referring to the tensions between Ukraine and Russia over the Crimea.

Those who see weaker prices said gold is due for a retreat for now.

“Gold made the week’s high on Monday on a flight-to-safety bid for potential Ukraine problems and then spent the rest of the week steady to lower waiting for those problems to escalate and for the employment report today. The employment data will not stop the Fed (Federal Reserve) from tapering (its quantitative easing program) and was negative for gold, but the Ukraine situation remains an unknown. Gold made a higher high, a higher low and looks to post a higher close to keep the uptrend intact, but seems to be losing momentum. I expect gold to consolidate next week - as long as Ukraine remains intact - and look for a steady-to-lower market,” said Frank Lesh, broker at FuturePath Trading.

A number of survey participants said they were neutral on prices next week, staying there was little reason to put on positions. “It’s very choppy and rangebound between $1,355 and $1,325. Despite the Russian news we couldn’t close over $1,355 and despite the payrolls we couldn’t get under $1,330,” said a bullion dealer.

Related Stories:

Kitco Gold Survey

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



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