Following this week’s bounce from the $1,520s region, most survey
participants in the weekly Kitco News Gold Survey expect gold prices to
continue to build on late-week gains.
In the Kitco News Gold Survey, out of 33 participants, 23
responded this week. Of those 23 participants, 21 see prices up, while
two see prices down, and zero are neutral. Market participants include
bullion dealers, investment banks, futures traders, money managers and
technical-chart analysts.
A solid majority of participants expect prices to rally next
week, especially since June gold futures on the Comex division of the
New York Mercantile Exchange held the low set on Wednesday of
$1,526.70. Many said the sell-off was overdone so the rebound was in
due course.
“Gold made everybody right by the end of the week... bulls,
bears, and fence-sitters alike can claim victory. Wednesday’s
high-volume capitulation selling successfully … was followed by an
impressive rally on Thursday that saw the largest one-day increase in
open interest (16,000 contracts) in quite a long time. Most of the big
changes in open interest the past 2-3 months have been declining so a
rise of this magnitude indicates money returning to gold. Examples of
technical indicators such as this tend to endure the trend so I look
for gold to trend a little higher in the week ahead, settling into a
$1,600-$1,625-ish range,” said Ken Morrison, editor and founder
of online newsletter Morrison on the Markets.
Those who see weakness next week said they think that gold
cannot build on these gains and that the rally was nothing more than a
short-term bounce in an otherwise down-trending market. Worries about
the eurozone, which have pressured gold recently, remain at the
forefront, they add.
There were no participants who were neutral on prices
Source; http://www.kitco.com/kgs/goldsurvey_may18.2012.html
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