In the Kitco News Gold Survey, out of 32 participants, 18 responded this week. Of those 18 participants, 10 see prices up, while five see prices down, and three see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.
Many who see higher prices next week said the longer-term fundamentals remain in gold’s favor and the recent weaker prices have offered those types of buyers a more attractive entry point. “Despite the difficulties this week, long term fund buying has reflected what expected ECB (European Central Bank) rate cuts and Euro debt troubles will do to gold soon,” said Carlos Perez-Santalla, precious metals broker at PVM Futures.
Others pointed out that gold has been hit by the strength of the dollar and if the dollar does pull back from its recent run higher then gold will rebound. Several have said they think that there are too many bulls in the dollar pasture which could mean the greenback is ripe for a retreat for the time being.
On the other hand, those who look for losses emphasize there’s still an attitude of “risk off” and as long as gold trades as a risky asset, it will have trouble rallying short-term, particularly if the euro weakness picks up speed.
Those who see prices ultimately unchanged said gold prices could consolidate at support around $1,650-$1,670 an ounce as it tries to decide where it will go next. For the latest updates PRESS CTR + D or visit Stock Market news Today
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