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Survey Participants Look For Softer Gold Prices Next Week

Friday November 14, 2014 12:10 PM

(Kitco News) - The majority of participants in the Kitco News gold survey say they look for the metal to be on the defensive during the week ahead.

In the Kitco News Gold Survey, out of 36 participants, 19 responded this week. Of those, five see prices up, while 11 see prices down and three 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 decline this week. Gold was down for the week as of early Friday, before getting a mid-morning pop on short covering. As of 11:34 a.m. EST, Comex gold for December delivery was up $3.90 for the week.

“The most interesting development has been the sharp increase in futures open interest over the past week, up 8% and a two-year high, during a period when prices were consolidating,” said Ken Morrison, editor of the online newsletter Morrison on the Markets. “It indicates a lot of new money making big directional bets. Given the strengthening dollar here at week's end combined with the bear-flag-like pattern in gold futures, the risk/reward favors the bears for at least a retest of the (Nov. 7) $1,130 low sometime in the next few days. “

Ralph Preston, principal with Heritage West Financial, is among the minority looking for an uptick. “I’m looking for a counter-trend bounce, essentially,” he said. Others suggested a pickup in physical demand at lower prices should start to offer some price support.

As always, some look for a sideways market.

“Flat. Difficult to call up or down, with no clear direction,” said Adrian Day, president and chief executive officer of Adrian Day Asset Management. “Gold is trying to bounce off the bottom, but buyers see no rush, so downward pressure remains.”

Kitco Gold Survey

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



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