Clear Majority In Gold Survey See Higher Prices Next WeekBy Neils Christensen
Friday May 15, 2015 12:15
(Kitco News) - Weaker U.S. data this week has propelled gold higher and both Wall Street and Main Street, in the Kitco Weekly Gold Survey, see higher prices next week as the market prepares to close above $1,200 an ounce.
For Kitco’s online survey, 314 people voted; of those, 162 participants, or 52%, expect to see higher gold prices next week while 101 people, or 32%, see lower prices and 51, or 16%, are neutral.
This week, out of 34 market experts contacted, 18 responded; of those, 11 participants, or 61%, see higher prices, two experts, or 11%, see lower prices and 5, or 28%, are neutral on the gold market. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.
For the third straight week, Main Street proved the most accurate as the previous survey showed most people 45% had expected to see higher prices this week. The rally started Wednesday after disappointing retail sales data helped to push gold prices above $1,200 an ounce, hitting a six-week high.
Friday, weaker-than-expected regional manufacturing data from the New York Federal Reserve is helping the market keep most of its earlier gains as it prepares to close in positive territory for the second consecutive week.
With the current price, Phillip Streible, senior market strategist at RJO Futures, described the gold market as in a “do or die” situation. “[A] level we have seen several times in the past.”
“A breakthrough of 1235 should warrant and explosive move higher but any stalled attempt will most likely see a selloff back to 1200 and then 1180,” he said.
Richard Baker, editor, Eureka Miner Report, said that because of disappointing data and a weaker U.S. dollar against the euro and yen, gold is seeing a technical reversal. He is also watching the $1,236 area in the near term.
“I believe it is possible that gold will move at least half way there next week,” he said, targeting $1,230 an ounce.