This week’s sharp sell-off and China’s weak data have survey
participants in the Kitco News Gold Survey split on the direction for
prices next week.
In the Kitco News Gold Survey, out of 33 participants, 24
responded this week. Of those 24 participants, nine see prices up, while
seven see prices down, and eight are neutral. Market participants
include bullion dealers, investment banks, futures traders, money
managers and technical-chart analysts.
Those who see higher prices said gold is due for a rebound
after this week’s sharp losses. Several called gold oversold, along with
the broader market.
Those who see weaker prices said there’s little around to
support prices at current levels and that momentum is lower. If the
Greeks cannot form a coalition government, that will add to uncertainty
and weigh on gold prices as the euro falls and the dollar rallies.
Ira Epstein, director of the Ira Epstein division of The Linn
Group, said with no new headlines about Iran and given that gold hasn’t
been able to rally on the sovereign-debt issues in Europe or politics
there, something else happening. “In this case, it’s the (technical)
chart action and choices investors are making. Investors are or have
moved into bonds, notes, the dollar, yen and at times, stock indices.
They are not driving gold or silver prices up…. Ultimately I think gold
ends up sharply higher, but not now nor necessarily this summer.
Therefore I think opportunity lies on the short side of the market.”
Survey participants who are neutral said they are being
cautious and waiting on the sidelines to see how current events play
out, regarding Europe’s political issues.
Source; http://www.kitco.com/kgs/goldsurvey_may11.2012.html
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