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Survey Participants Turn Bearish Toward Gold For Next Week

Thursday April 17, 2014 12:02 PM

(Kitco News) - Survey participants turned bearish toward gold prices for next week in the weekly Kitco News Gold Survey after a swift fall in values this week.

Out of 33 participants, 21 responded this week. Seven see prices up, while 12 see prices down and two see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.

Last week, a majority of the survey participants said they looked for prices to rise this week. As of 11:45 a.m. EDT Friday, Comex gold for June delivery was down $20 for the week.

Those who see weaker prices said after this week’s selloff, the market could see further losses.

“April 15 has not been kind to gold each of the past two years. This year didn't produce a record volume day or a $140 decline as was the case in 2013, but it probably has put the nail in the coffin for gold's upside potential. I expect gold breaks the $1,280/75 support in the week ahead and appears poised for an eventual re-test of the $1,200 area,” said Ken Morrison, editor of online newsletter Morrison on the Markets.

Those who see higher prices said they believe the break gold suffered this week was too much, too fast, so they expect to see price rebound.

“Gold could inch up next week, but the market will be watching economic news out of China; anything that suggests the economy is slowly dramatically would be negative for gold.  The other major recent concern—that the Federal Reserve might tighten soon—has eased and continued to fade … with Chair (Janet) Yellen’s comments on keeping interest rates low for a long time,” said Adrian Day, chairman and chief executive officer, Adrian Day Asset Management.

Kitco Gold Survey

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By Debbie Carlson of Kitco News; dcarlson@kitco.com
Follow me on Twitter at @dcarlsonkitco



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