Survey Participants Look For Higher Gold Prices Next Week: Report

By Staff,

Shutterstock photo

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 reported.

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 bearish.

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 ever.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks:

More from MT Newswires


MT Newswires

MT Newswires

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by