The big move in gold prices this week after the bond-buying
announcement by the European Central Bank and hopes for more
stimulus from the Federal Reserve next week has most participants
in the weekly Kitco News Gold Survey suggesting values for the
yellow metal could rise again, Kitco reports.
In the Kitco News Gold Survey, out of 33 participants, 29
responded this week. Of those 29 participants, 22 see prices up,
while four see prices down, and three are neutral or see prices
moving sideways. Market participants include bullion dealers,
investment banks, futures traders, money managers and
Several participants echoed what Ira Epstein director of the Ira
Epstein division of The Linn Group said, which is that there are
expectations that the Fed will announce another stimulus plan,
which will lower the value of the U.S. dollar.
Sean Lusk, gold and precious metals analyst at Iron Beam, said:
"If some form of stimulus is announced gold could trade up to or
even surpass yearly highs up at $1,800. However the market will
need to hear it from Bernanke's mouth for obvious
Those who see weaker prices said that gold is due for a
correction after such a stout rally this week, especially if the
Fed opts not act at the FOMC meeting.
Similarly, those who are neutral on prices said they want to see
how gold acts after this week's gains and the Fed meeting.