Higher Prices Expected Overall Next Week For Gold, But Survey Participants Generally Split

Survey participants in the weekly Kitco News Gold Survey see gold prices rising next week, but bulls do not have the majority of the opinion.
In the Kitco News Gold Survey, out of 33 participants, 25 responded this week. Of those 25 participants, 11 see prices up, while six see prices down, and eight are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Those who see higher prices said the U.S. dollar’s action will determine where gold may go.
“With the dollar weakening versus the euro, gold should do well in the week and month ahead. I look for a $1,680 target next week and longer term, the next 4-6 weeks, $1,725 is a reasonable upside objective,” said Ken Morrison, editor and founder of online newsletter, Morrison on the Markets.
Generally a weaker dollar supports gold since the metal is denominated in dollars.
Technical analysts said $1,620 an ounce is a key chart level for gold to hold next week.
Those who see weaker prices also spoke of currency factors, suggesting that the euro may come under pressure if there are any surprises in this weekend’s French presidential elections or weaker-than-expected results regarding eurozone manufacturing data due out next week.
Several who said they were neutral on prices or saw prices holding in a sideways pattern said the lack of a strong trend in gold should continue for the time being, which means range-bound trade.