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Saturday, July 21, 2012

gold prices prediction week july 23-27 2012

gold prices prediction week july 23-27 2012 : Gold advanced for a second session Friday, but three prior-day losses weighed heavier on the yellow metal as prices slipped 0.6% this week. On Friday, gold prices for August delivery edged up $2.40, or 0.2%, to settle at $1,582.80 an ounce on the Comex in New York. Prices ranged from an intraday low of $1,572.60 to a high of $1,586.70.

Gold fell in recent sessions after Federal Reserve Chairman Ben Bernanke gave no indication during congressional testimony that the economy is in greater need of monetary stimulus despite softening economic indicators, including monthly jobs reports that have continued to disappoint.

Soaring Spanish bond yields and talk of a bailout for Madrid sent the euro falling and gold's traditional hedge, the dollar, rising.

Such a combination normally would be bearish for gold, which often trades inversely with the greenback, though reports the Russian central bank has been stocking up on the yellow metal sent the commodity rising.

Eurozone ministers signed off on terms to give EUR100 billion bailout for its banking sector as well as for regional governments, though investors fear the country itself will need a sovereign rescue as well.

Still, the news eased demand for the dollar, which further gave gold room to rise, though a plunging euro capped gold's gains despite talk of Russian demand.

There appears little consensus among market players in forecasting the direction for gold next week.

Kitco News Gold Survey next week july 23-27 2012
"In the Kitco News Gold Survey, out of 33 participants, 22 responded this week. Of those 22 participants, 10 see prices up, while six see prices down, and six are neutral," reports Kitco News.

"Participants who see higher prices said the market is holding $1,550 and they anticipate some sort of quantitative easing will eventually appear to support gold prices. Also, strength in other commodity markets is stoking some inflation talk…

Others who are bearish also said the market ‘feels heavy’ at current levels and could test the downside…"

Bloomberg survey gold prices next week july 23-27 2012
Bloomberg’s weekly survey was evenly split, with 10 participants bullish and 10 expecting little change. Six were bearish.

The survey results underscore how non-committal market watchers are for precious metals next week as a whole. Many analysts said the summer doldrums are upon the complex and it wouldn’t be surprising to see gold hold in the current range of $1,550 to $1,600, with strongest support at $1,525.

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