The outlook for gold prices next week appears cloudy as participants in Kitco News’ weekly Gold Survey shows a sharp divide, with a slight bias for higher prices.
In the Kitco News Gold Survey, out of 34 participants, 24 responded this week. Of those24 participants, 13 see prices up, while 10 see prices down and one sees prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.
Of the participants who see higher prices next week, several said this week’s sharp sell-off has taken the metal to areas which might entice bargain hunters to pick up gold cheaper. Also, many point out that the underlying fundamentals for gold: low interest rate environment, quantitative easing and concerns about the global economic health ultimately is price-supportive.
The participants who see weaker prices next week said this week’s break has caused some short-term damage on technical charts which could embolden bears as momentum has shifted to the bearish side.
Adam Hewison, president and chief strategist with INO and MarketClub.com, said he believes gold will be on the defensive for the next week or two, possibly trading down to $1,670 an ounce from the current price of around $1,725.
“I think we'll see more liquidation in the equity markets both here and overseas and the need for investors to be in cash,” Hewison said, events that have put pressure on gold this week.
The person who sees unchanged prices expects some consolidation after the sharp break this week keeping the market rangebound.
Source; http://www.kitco.com/kgs/goldsurvey_november18.2011.html
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