Split Views On Gold's Direction Next Week Dominate Survey
New York (Dec 5) Participants in the weekly Kitco News Gold Survey are split over their views on where prices should go next week, with only a nominal number of respondents bearish.
In the Kitco News Gold Survey, out of 36 participants, 21 responded this week. Seven see prices up, while 10 see prices down and four see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.
Last week, survey participants looked for prices to fall this week. At 11:30 a.m. EST, Comex gold for February delivery was up about $20 for the week.
Those who remain bullish on gold’s price said they’re impressed how it’s held up even in the face of a stronger dollar.
“Gold’s initial reaction to the ‘hot’ jobs number and more specifically to the stronger dollar is a good buying opportunity for gold. Despite the dollar’s strength all week, gold has held the $1,200 area well and short-term momentum continues to favor the upside. I expect gold will close above $1,200 next week,” said Ken Morrison, editor of online newsletter Morrison on the Markets.
Those who see weaker prices said they think gold is a sale when prices rally. “If we close under $1,200 I think we’ll see it weaker. The only good thing about this is we bounced off the 20-day (moving average) of $1,188.40…. What would change my mind is if we saw gold close above the 50-day at $1,202.90,” said Charlie Nedoss, senior market strategist at LaSalle Futures Group.
Some participants said they expect gold will hold in the current trading range.
Gold will “pause after the strong rally this past week, but the medium-term trend, as per from beginning of November, remains up. Investors realize that for all the words, monetary policy in the U.S. as around the world remains accommodative,” said Adrian Day, chairman and chief executive officer Adrian Day Asset Management.