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Survey Participants Remain Bearish On The Gold Price Outlook

Friday October 3, 2014 12:08 PM

(Kitco News) - A majority of participants in the Kitco News weekly gold survey remain bearish on prices for the metal next week, continuing to say the strength of the dollar weighs on gold.

Out of 37 participants, 26 responded this week. Of those, seven see higher prices, 16 see lower prices and three 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 bearish. As of 11:30 a.m. EDT, Comex December gold was down about $20 for the week.

The dollar strength is weighing on gold, said most participants who see weaker prices next week.

“New highs for the dollar, new lows for gold. Is there any factor more important? We all know the reasons why and they aren’t going to change soon. A correction will come as the dollar is overbought and gold oversold, but sometimes these conditions persist longer then we expect. I expect a lower gold market next week,” said Frank Lesh, senior broker and futures market analyst at Futurepath Trading.

Adam Klopfenstein, market strategist with Archer Financial Services, said he sees no reason to buy gold.

“There is no reason to bargain hunt. Right now I’d rather own mold than gold. At least mold will reproduce,” he said.

A few participants who see higher prices next week said now that gold broke $1,200 an ounce, it could encourage some buying.

“I think gold is going to go up next week. Today’s selloff and break below $1,200 looks like a big washout and it’s getting really oversold. Follow-through (selling) on Monday could push it down to a retest of $1,180, but I think that will hold with gold getting really oversold. U.S. news drops off next week so some of the pressure on gold may ease, giving it a chance to bounce back,” said Colin Cieszynski, senior market strategist at CMC Markets.

Those who are neutral say after breaking $1,200 Friday, the market might try to consolidate this week’s losses.

Related Stories:

Kitco Gold Survey

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



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