A heavy majority of participants in Kitco News’ Gold Survey this week expect prices to rise as some technical indicators have turned positive in the short-term and after a dovish statement by the Federal Open Market Committee meeting on Wednesday.
In the Kitco News Gold Survey, out of 32 participants, 25 responded this week. Of those 25 participants, 19 see prices up, while six see prices down, and none are neutral on prices. Market participants include bullion dealers, investment banks, futures traders, money managers and technical chart analysts.
Several participants cited the announcement from the FOMC to extend the ultra-low U.S. interest outlook until 2014 as bullish for gold. Some participants who were previously expecting prices to fall in this quarter changed their view after the news.
Adrian Day, president of Adrian Day Asset Management, said he expects higher prices next week, but is cautious. “Europe continues to bumble along, and now the Greek debt deadline is looming. So long as there is no deal on that issue, gold will be well bid. A plausible Greek agreement would likely see gold sell off, temporarily, since the larger Euro-debt issue remains,” he said.
Participants who see weaker prices said the current rally in gold has gotten ahead of itself and is due for a corrective pullback. Spencer Patton, founder and chief financial officer of Steel Vine Investments, echoes what some others said. “(The) market correction in equities begins next week... and since gold is a ‘risk on’ asset -- gold gets pulled down from overbought levels along with everything else,” he said.
Source; http://www.kitco.com/kgs/goldsurvey_january27.2012.html
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