Strong Majority Of Gold Survey Participants See Higher Prices Next Week Out of 37 participants, 27 responded this week. Of those, 18 see higher prices, six see lower prices and three see prices trading sideways or are neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts. Last week, survey participants were nominally bearish for this week. As of 11:30 a.m. EDT, Comex December gold was up about $17 for the week. With the tensions in the Russian-Ukrainian conflict rising again this week, an end to a cease-fire between Israel and Hamas and U.S. airstrikes on militants in Iraq, most survey participants said they were expected gold to remain supported. Technical charts also appear to show rising prices. Colin Cieszynski, senior market strategist at CMC Markets, said with gold back over $1,300 an ounce, technical charts showing are turning positive, with a series of higher lows and rising momentum, he said. Gold “has room to run if it can get through $1,322. On the fundamental side, Europe’s economy (is) weak and sanctions (are) not helping. (That) means growing pressure on (the) European Central Bank to do even more stimulus, which had boosted gold in the past. Political flare-ups in any number of places like Ukraine, Iraq, West Africa, Gaza, Libya and more could send capital fleeing into defensive havens at any time and keep trading active,” he said. Adam Hewison, president and chief strategist with INO and MarketClub, is also bullish on gold, but offered another reason. “We are extremely bullish on gold for the next five to six weeks. (We are) looking for a move to the $1,380 to $1,400 levels. Look for (Russian President Vladimir) Putin’s theft of 1.2 billion (computer) passwords to strike fear into the online world and push gold higher,” he suggested. A few other survey participants aren’t so sure gold will retain its gains on saber-rattling. “The fear trade is overdone. Fear about Russian aggression has driven the recent gold gains, but those worries are misplaced. Gold will fade along with those concerns,”
Posted on: Mon, 11 Aug 2014 06:56:01 +0000
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