Sep. 21 2012 — 2:36 pm | 186 views | 0 comments
(Kitco News) – Most participants in Kitco News’ weekly gold survey said they look for the precious metal to maintain its upward momentum next week on continued buying after recent monetary easing in the U.S. and elsewhere, as well as technical-chart strength.
Out of 34 participants, 21 responded this week. Of those, 15 see prices up, while four see prices down and two see prices sideways or unchanged. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.
December gold has already risen smartly on the Comex division of theNew York Mercantile Exchange since mid-August, rising from an Aug. 15 low of $1,592.10 an ounce to a high so far Friday of $1,790. Much of this was first on expectations of easing from the Federal Reserve, then further gains when policy-setters actually announced more accommodation. The European Central Bank and Bank of Japan are also undertaking bond-buying programs.
“Don’t fight the Fed–QE continues to push markets higher,” said Spencer Patton, chief investment officer for Steel Vine Investments.
Those who look for gold to soften next week point out that markets invariably run into some periods of consolidation or corrections, rather than citing anything they see as overtly bearish.
“A modest correction is in order following the major rally over the past few weeks,” said Adrian Day, president of Adrian Day Asset Management. “I would not sell because the fundamentals remain positive; this is only a short-term pullback.”
By Allen Sykora of Kitco News; firstname.lastname@example.org