Most participants in Kitco News' weekly gold survey said they
look for the precious metal to maintain its upward momentum next
week on continued buying after recent monetary easing in the U.S.
and elsewhere, as well as technical-chart strength, Kitco
Out of 34 participants, 21 responded this week. Of those, 15 see
prices up, while four see prices down and two see prices sideways
or unchanged. Market participants include bullion dealers,
investment banks, futures traders and technical-chart analysts.
December gold has already risen smartly on the Comex division of
the New York Mercantile Exchange since mid-August, rising from an
Aug. 15 low of $1,592.10 an ounce to a high so far Friday of
$1,790. Much of this was first on expectations of easing from the
Federal Reserve, then further gains when policy-setters actually
announced more accommodation. The European Central Bank and Bank of
Japan are also undertaking bond-buying programs.
Those who look for gold to soften next week point out that
markets invariably run into some periods of consolidation or
corrections, rather than citing anything they see as overtly
Fifteen of 29 analysts surveyed by Bloomberg expect prices to
rise next week and seven were bearish. A further seven were
neutral, extending the overall bullish outlook for an 18th week.
Hedge funds' bets on a rally are at a six-month high and investors
bought the most through gold-backed exchange-traded products this
quarter in more than two years.
Gold will climb to $2,000 by the second quarter and will reach
$2,400 by the end of 2014 if the Fed's latest easing lasts until
then, Bank of America said in a Sept. 18 report, Bloomberg
reported. Prices will exceed $2,000 in the first half of next year,
Deutsche Bank wrote that day. Morgan Stanley expects gold to
average $1,816 next year and Standard Chartered predicts a
second-quarter average of $1,900. Both would be the highest
Copyright (C) 2013 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.