High Gold Prices in the Coming Week
Following strong technical performance and geopolitical worries, gold prices are expected to rise according to the weekly Kitco News Gold Survey.
Out of 37 participants, 25 responded this week. Of those, 17 see higher prices, six see lower prices, and two see the market trading neutral. These participants include investment banks, futures-traders, and technical-chart analysts.
Those who forecast higher prices next week cite either technical chart patterns or geopolitical concerns.
“The divergence between copper and crude oil relative to gold has widened to levels not seen since mid-March. This four-month period overlaps Comex gold’s four-month intraday high of $1,346.80 per ounce. More ominously, the divergence spike … repeats a ‘double-peak’ characteristic that preceded the Great Recession and market turmoil following Arab Spring 2011. The witches brew this time includes multi regional conflicts — Ukraine/Russia, Iraq/Syria, Israel/Hamas – re-emerging anxiety about the financial health of Europe’s peripheral countries and concerns about China’s recent import/export data,” said Richard Baker, editor, Eureka Miner.
Some see Gold’s price weakening due to the U.S. Dollar strengthening.
“The market remained in the $1,310-$1,340 closing-basis range as I expected, but with the dollar showing signs of strengthening, I’m inclined to stay with a $1,325-$1,350 range in the week ahead. You can put me in the bearish category for the week ahead,” said Ken Morrison, editor of the online newsletter Morrison on the Markets.
The minority that saw the price of Gold not changing commented,
“I see gold trading unchanged over the next week; it may retest its $1,330 breakout point but should finish near current levels. Gold had a very nice breakout this week but RSI (relative strength index readings) have become overbought, so it may take some time to consolidate the gains as is normal following a big rally. Growing concerns about the European banking sector and (Federal Reserve) Chair (Janet) Yellen’s testimony to Congress, which is likely to … come off as dovish, may keep a floor under gold at a higher level in the near term,” said Colin Cieszynski, senior market strategist at CMC Markets.
Last month, the I Know First Forecast correctly projected gold’s gains. To see our current daily gold predictions visit us here.
