Gold prices seen rising next week: Kitco Gold Survey
07 May 2011 at 18:00 IST
By Debbie Carlson
After a sharp fall in gold prices this week, precious metals market watchers are looking for the metal to rise slightly next week, but caution abounds.
In the inaugural Kitco News Gold Survey, 27 out of 35 participants responded. Fifteen of those 27 see prices up, while eight see prices down and four see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical chart analysts.
A sharp drop in silver pulled down gold prices and started a commodities-wide sell-off this week.
Considering there was such a swift move, some participants expect a consolidation period for next week.
Mike Zarebmski, futures analyst with optionsXpress, believes the break in commodities is coming to an end, which echoes what several survey responders who expect firmer prices said. “The sharp sell-off in prices should spur some bargain hunters back into the gold market which should help to form a near-term bottom in prices. The better than expected NFP (non-farm payrolls) report may have also put some confidence back into the market. That being said I don’t see prices rising sharply as we will still seem some selling pressure on rallies by traders who were looking for a correction to exit long positions, but if we can stay positive to end the week, I would expect a moderate increase next week,” he said.
Those who see prices moving sideways or weaker point to the impact of even a slight rebound in the U.S. dollar on gold.
“These precious metals have been very top heavy for months. The recent sell-off proves that any U.S Dollar friendly news would result in a mammoth sell-off…. So I think we may trade down to sideways until the gold market can regain upside momentum….Remember we are still in unchartered territory…. Traders are very uncertain at these levels,” said Mike Daly, gold and silver specialist at PFGBest, who added that despite the break, nothing has changed fundamentally for gold.
Cecylia Tulikowski-Denison and Alexander Létourneau contributed to this article.
Courtesy: www.kitco.com
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
No comments:
Post a Comment