Higher prices are expected by a majority of participants in the weekly Kitco News Gold Survey, as the lingering eurozone worries and demand for gold at under $1,600 an ounce is expected to keep the market lifted.
In the Kitco News Gold Survey, out of 34 participants, 27 responded this week. Of those 27 participants, 17 see prices up, while six see prices down, and four see prices moving sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Several participants cited the continued economic mess in the eurozone as supportive for gold prices and for gold’s safe-haven properties.
Prices are expected “up moderately as gold continues to recover (from the) mid-February drop, on Europe and realization monetary policy will continue to be easy,” said Adrian Day, chairman and chief executive officer, Adrian Day Asset Management.
Those who see weaker prices cited gold’s continued inability to break through stout resistance at $1,620. Further, some said that the news that is known – eurozone problems, loose monetary policy - don’t offer any catalysts to rise.
“Believe the market is in a short-term bear cycle, with most of the fundamental pillars for bullish sentiment muted. Expect lower prices next week,” said Peter Hug, director of trading for Kitco.
Those who are neutral on the market or see prices holding sideways said gold remains trapped in the range it has held essentially held all year.
"The gold market continues in a sideways mode as it constructs the building blocks that it will eventually push it higher. For the moment we see no reason to be involved with trying to pick a bottom and will rely our Trade Triangle technology to indicate when the market has made a turn to the upside. At the moment, there are better places to park your money than in gold," said Adam Hewison, president and chief strategist with INO and MarketClub.com
By Debbie Carlson of Kitco News firstname.lastname@example.org