Friday January 18, 2013 12:10 PM
A solid majority of participants in the Kitco News Gold Survey see higher gold prices next week, as signs for gold have turned bullish after a mixed start for the market in 2013.
In the Kitco News Gold Survey, out of 33 participants, 26 responded this week. Of those 26 participants, 18 see prices up, while three see prices down, and five see prices moving sideways. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
The gold market has put in a choppy trade for 2013, but after holding support at this week’s lows at $1,669.40 an ounce and then rallying on Thursday off of session lows to close with gains, most participants in the Kitco News Gold Survey said they expect prices to have enough momentum to take out resistance at the $1,700 an ounce area.
“Gold prices look to make a strong recovery next week and gain momentum after rejecting numerous washout attempts ... Look for gold to retest $1,720, the 200-day moving average and look for support from outside metals like platinum and palladium,” said Phil Streible, senior commodities broker at RJO Futures.
The few survey participants who are bearish said are skeptical about the recent price strength in gold. “(I’m) not quite convinced on this rally in gold. I think we still need to see $1,580 before we see new highs. I am bearish on this metal unless we see a strong solid close above $1,715....Even then (it) may be tough to get through $1,720. I am bearish for next week,” said Jimmy Tintle, owner, GreenKey Alternative Asset Services.
Those who are neutral or see the market moving sideways said gold doesn’t have enough momentum to break through the $1,700-$1,710.