Gold Bullion (GOLD)

[CaptWhizbang]

Survey Participants Split On Gold Price Direction For Next Week

Friday June 8, 2012 12:16 PM

Survey participants in the weekly Kitco News Gold Survey are split on price direction next week, with no category receiving a majority.

In the Kitco News Gold Survey, out of 33 participants, 27 responded this week. Of those 27 participants, 13 see prices up, while nine see prices down, and five are neutral. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.

Prices fell this week after Federal Reserve Chairman Ben Bernanke did not say strongly that the Fed will launch any additional monetary stimulus and only said that officials remain “ready to act” if economic conditions warrant. Gold received a mild boost from a surprise interest-rate cut by the People’s Bank of China. Even though the Fed did not tip its hand about stimulus, ideas of more central-bank action because of a possible global economic slowdown has bullish survey participants expecting higher prices.

“China and Australia see it and are acting. The U.S. and Euro authorities will do so too,” said Bill Goldman for 3GF Corp.

A number of participants were bearish on prices, citing the way gold could not hold support at $1,600 an ounce this week. That level now becomes resistance. “The short-term trend has turned down again. Support is at the previous low of $1,529.30,” said Darin Newsom, Telvent DTN senior analyst.

The participants who are neutral on prices said they want to see if gold can hold the lows in the $1,520s area set last month. Also, some said they are waiting until after the Greek elections on June 17 to see what direction the metal may take based on the election outcome.