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Survey Participants Split Over Gold Price Direction For Next Week

Friday September 5, 2014 12:08 PM

(Kitco News) - Survey participants in the weekly Kitco News Gold Survey were split again on their views for gold-price direction for next week, with only a nominal number bearish.

Out of 37 participants, 22 responded this week. Of those, eight see higher prices, nine see lower prices and five see prices trading sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

Last week, survey participants were slightly bearish. As of 11:30 a.m. EDT, Comex December gold was down about $23 for the week.

Some who see higher prices said they think the recent strength in the U.S. dollar is due for a retreat.

“The … U.S. dollar is overbought technically and the economic news and central bank speculation that has been pushing it higher should fade next week, enabling gold to respond to the big increases coming to the ECB (European Central Bank) balance sheet between the September targeted LTRO (long-term refinancing operation) and ABS (asset-backed securities) purchases starting in October,” said Colin Cieszynski, senior market strategist at CMC Markets.

Those who see weaker prices said even if the dollar retreats next week following recent gains, they expect the long-term trend of dollar strength to weigh on gold.

Richard Baker, editor, Eureka Miner, said gold’s weakness is in line with weakness in other commodities.

“Oil, gold and copper had a down week even with ECB President Mario Draghi’s surprisingly accommodative monetary announcement; the red metal suffered the least, down a fractionally, but oil and gold were off more than 1.5% in early morning trading compared to last Friday’s close. This continues a theme of falling gold prices against a backdrop of broadly declining commodities. The (S&P GSCI), which covers everything from copper to cattle, is remains only slightly above its 52-week low,” he said. “Without a geopolitical reason to bounce higher, gold will likely retest this low. My target for next week is $1,260 per ounce.”

Related Stories:

Kitco Gold Survey

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

 

 

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