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Friday, May 18, 2012

gold prices prediction next week May 21-25 2012

gold prices prediction next week May 21-25 2012, spot gold next week, Gold is expected to rise next week 5/21-25/2012 : Gold rose to a one-week high on renewed speculation that the Federal Reserve will announce more stimulus to boost the U.S. economy, increasing demand for the precious metal as an inflation hedge.

Prices were higher on Friday and mixed on the week. The most-active June gold contract on the Comex division of the New York Mercantile Exchange rose Friday, settling at $1,591.90 an ounce, up 0.50% on the week. July silver rose Friday, settling at $28.715 an ounce, down 0.61% on the week.

Several analysts who follow technical-chart patterns said this week’s low of $1,526.70 for the June futures was important to hold and may provide a stronger base of support for the market if prices fall again. These analysts said gold could target $1,625-$1,640 next week if momentum continues up.

After two days of sharp gains, some analysts suggested gold might have turned a corner for price direction after recent weakness. They pointed out that gold’s ability to rally Thursday as risk assets fell might signal a new direction for gold, returning it to safe-haven status, but others urged caution, saying that one day does not make a trend.

Much will depend not so much on the European debt situation, as opposed to whether the global macro environment starts to deteriorate even further. Such a scenario would help gold’s upside more, as central banks will then be expected to be more aggressive in terms of quantita­tive easing laying fertile ground for a more sustained advance in gold

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.

Kitco News Gold Survey for next week may 21-25 2012
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.

Bloomberg gold survey next week may 21-25 2012
Gold analysts were bearish for the first time in six weeks, with 13 of 29 people surveyed expecting prices to fall next week. Five were neutral. The metal dropped to $1,526.70 an ounce on May 16 on Comex in New York, the lowest since Dec. 29. Investors are reducing gold holdings in exchange-traded products for a third consecutive month, the longest stretch since 2004, and favoring the dollar, data compiled by Bloomberg show.

How will gold prices next week may 21-25 2012
Traders will look to this weekend’s G-8 meeting and any message sent from the confab on what measures might be taken by policy-makers to boost growth and deal with Greece.

The U.S. economic data calendar is light going into next week, so market watchers may look for direction from China’s HSBC flash Purchasing Managers Index and Germany’s IFO Index. Also next week there is the EU Summit, which could provide plenty of headlines as government officials try to balance austerity and growth.

Gold is expected to rise next week, but not everyone sees it changing the recent trend. looking toward next week gold might have the chance to add a little more to its gains, but sees the market topping out around $1,630-$1,640. Much of the strength in gold comes from hopes of another round of monetary stimulus, which is something he doesn’t foresee happening. At most, he said, the Fed may try to shift around the balance sheet in an effort to keep down longer-term yields. That would not be supportive for gold.

prior to the rebound off the $1,520s area, gold had been drifting lower, while U.S. bond yields were falling and German bund yields rising. the general economic slowdown globally, which hurts demand for everything, including gold. Crude oil prices are falling, which is another side of economic weakness.

In the near-term I see gold up a little more from here, but then I see it coming back down. If we break this week’s low, there’s nothing to stop it until $1,470 and then maybe $1,420,

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