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Survey Participants See Weaker Gold Prices Next Week

Friday May 2, 2014 12:10 PM

(Kitco News) - The majority of participants in the Kitco News’ weekly gold survey said they see lower prices next week.

Out of 33 participants, 19 responded this week. Of those, 11 see prices weaker, while four see prices up and four see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.

Last week, survey participants looked for prices to rise this week. As of 11:30 a.m. EDT, Comex gold for June delivery was up $1.50 for the week.

Sean Lusk, director of commercial hedging with Walsh Trading, said he looks for gold to retreat after the jump in U.S. nonfarm payrolls reported Friday and the continued strength in equity markets.

“It’s going to put some downward pressure on the metals,” he said. “I think the only thing keeping it up here is this Ukraine news – there have been some skirmishes in the country and the market has its eye on that.”

George Gero, precious-metals strategist with RBC Capital Markets Global Futures, said he sees prices rising since “all of the negatives are already in the market,” citing factors such as stronger U.S. economic data this week. “At this point, we’re probably going to be moving a little bit higher and there is going to be a reallocation of assets next month into gold,” Gero said.

Adrian Day, president and chief executive officer of Adrian Day Asset Management, is among those who sees little change, pointing out gold has held around the recent lows three times since March.

“China’s weak manufacturing number and improved economic reports -- and the Fed’s response -- in the U.S. suggest gold may be weak or flat next week,” he said. “But with the Ukraine situation unsettled, I would not want to be out of gold and we could see a bounce any time.”

Kitco Gold Survey

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By Allen Sykora of Kitco News; asykora@kitco.com



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