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Friday, August 24, 2012

Gold prices prediction week august 27-1 Sep 2012

Gold prices prediction week august 27-1 Sep 2012, gold prices forecast next week 8/27/2012, gold prices forecast september 2012 : Gold prices fell on Friday as investors sold the metal for profits, ending a rally fueled by expectations the Federal Reserve will stimulate the economy via monetary easing measures in the near future. Upbeat durable goods orders helped fuel profit taking.

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were down 0.02% and trading at USD1,670.25 a troy ounce, up from a session low of USD1,662.95 and down from a high of USD1,672.75 a troy ounce early during the session.

Stimulus measures such as quantitative easing, under which the Fed buys bonds from banks to inject liquidity into the financial system and lower interest rates, weaken the dollar and send gold rising as a side effect.

However, since that meeting, surprisingly sound economic indicators have hit the wire, prompting investors to view that the Fed may hold off after all, including firmer retail sales, consumer sentiment and industrial production figures.

More solid data broke on Friday, which sent gold falling. The Census Bureau reported earlier that durable goods orders rose to 4.2% in July from 1.6% in June, whose figure was revised up from 1.3%. Analysts had expected durable goods orders to rise 2.4% last month.

In the Kitco News Gold Survey, out of 32 participants, 24 responded this week. Of those 24 participants, 13 see prices up, while five see prices down, and six are neutral or see prices moving sideways. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Those who see higher prices said momentum could push values up, with a trip to $1,700 possible. Also, gold might try to hold its firmer tone ahead of the Federal Reserve confab next week in Jackson Hole, Wyo., as gold bulls hope Fed Chairman Ben Bernanke will tip his hand to show if there is any timeframe for possible stimulus. After this week’s Federal Open Market Committee meeting minutes for August were released, gold price rallied on thoughts the Fed was inching closer to action.

Those who see weaker prices said they expect some sort of retracement after this week’s gains, especially if there are no soothing words from Bernanke.Those who are neutral on gold said they expect gold to consolidate at current levels after the sizable run up in prices this week.

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