Most survey participants in Kitco News’ Gold Survey are expecting gold prices to continue to climb next week, building on recent momentum.
In the Kitco News Gold Survey, out of 32 participants, 24 responded this week. Of those 24 participants, 14 see prices up, while seven see prices down, and three are neutral on prices. Market participants include bullion dealers, investment banks, futures traders, money managers and technical chart analysts.
Those who see higher prices expect the bullish trend to continue as gold has put in five weeks of gains, while those who expect price weakness said the market is due for a correction.
The idea that gold prices need a correction is a view that’s held by many in the survey, whether they expect prices to rise or fall next week. It’s the depth of the price correction that determines whether the survey participant is bullish or bearish.
One example of this thinking is from Mark Leibovit, editor of VRTrader. “(I’m) going to continue to give uptrend the benefit of the doubt, even though it’s a bit ‘long in the tooth’ from the Dec. 29 lows. I wouldn’t do any new buying, however, until we see a retracement. Ideally, a pullback to $1,680 in gold would be great, but cannot assure you we will see that now. Frustration for the bears is that gold could see $1,840 first,” he said.
Even those who are neutral on prices cited the one-way move in gold prices as a reason to be on the sidelines for the time being.
Debbie Carlson -Kitco News February 3, 2012