Gold Could Rise Next Week If Current Nervousness About Global Economy

Gold prices enjoyed a late-week surge as concerns about the global economy reinvigorated flight-to-quality buying, building on the recent short-term higher trend seen in the metal.

If those concerns spill into next week, gold may continue its ascent, particularly as technical charts show support, but market participants said traders should stand on guard in case profit-taking occurs following Wednesday’s Federal Open Market Committee meeting.

A week in gold: Best run for 16 months

All of a sudden the outlook for the gold price is not so gloomy as the metal headed for a fifth straight week of gains.

It was its best performance for almost 16 months and follows a week of poor economic and corporate data of the US and China and emerging markets turmoil as Argentina devalued the peso.

The dollar was hit hard by the events, which lifted gold as the two traditionally move in opposite directions.

This week has also underlined that not all of the world’s problems have been solved. Gold fell by 28% last year partly because the improving global economy eroded its insurance or safe haven status. 

Survey Participants Forecast Higher Gold Prices For Next Week

A majority of survey participants in the Kitco News Gold Survey forecast higher gold prices for next week, expecting the yellow metal to build on its gains.

Higher Gold Prices Forecast For Next Week

A majority of survey participants in the weekly Kitco News Gold Survey expect higher prices next week as they said they believe prices will try to sustainably break through the stubborn resistance at $1,250 an ounce.

In the Kitco News Gold Survey, out of 33 participants, 27 responded this week. Sixteen see prices up, while eight see prices down and three see prices trading sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

Talking Bitcoin, Gold And Silver

A momentous thing just happened -- Bitcoin breached $1,000.

Is it a bubble? Who knows, but one thing is certain, you can buy a lot more gold and silver with one bitcoin than you could a year ago.

Fiat Alternatives
There are many parallels between bitcoin and gold, both are alternatives to fiat money, both are faceless currencies and both have limited supplies. However, in the last two years one has seen its price climb from $7 to $1000, the other has fallen from $1,900 to $1200.

Which begs the question: is bitcoin is the new gold?