A vast majority of survey participants in the weekly Kitco News
gold survey see higher prices for the yellow metal, based on the
likelihood that the debate over the "fiscal cliff" in the U.S. will
drag on, Kitco reported.
Out of 33 participants, 25 responded this week. Of those 25
participants, 18 see prices up, while two see prices down, and five
are neutral or see prices moving sideways. Market participants
include bullion dealers, investment banks, futures traders, money
managers and technical-chart analysts.
"The main risk would be of Washington suddenly coming to their
senses and coming up with a comprehensive plan to cut runaway
government spending and entitlement programs in order to balance
the budget. On second thought, that's not much of a risk. No doubt
there will be soothing words as the problem is pushed further into
the future, and gold could react negatively in the short term to
that, but fundamentally things are still positive for gold," said
Adrian Day, chairman and chief executive officer of Adrian Day
Others suggested seasonal trends remain in gold's favour. Those
who see prices unchanged or are neutral on gold all said they
expect the market to be range-bound, with the $1,700 (U.S.) area
acting as strong support and the $1,735 to $1,750 area as
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.