Gold prices are holding above $1,600 (U.S.) an ounce and that’s a positive sign for gold to drift higher, as a majority of participants in the Kitco News Gold Survey see stronger prices next week.
In the Kitco News Gold Survey, out of 32 participants, 19 responded this week. Of those 19 participants, 11 see prices up, while two see prices down, and six are neutral or see prices moving sideways. Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Those who see higher prices suggested that gold’s ability to hold above $1,600 is helping the market to form a new bottom in the wider trading range of $1,550 to $1,640. Most of these participants who see higher prices call themselves “cautiously bullish,” such as Mark Leibovit, editor of the VR Gold Letter, who added he is looking for a break through the upper resistance to feel stronger about higher gold prices.
A number of survey participants see no reason for gold to move out of its continuing sideways trading range, given that August is a slow trading month.
“There’s not much to talk about this week. I think we will continue to see a coiling feature for this market going into the notorious September rally. Demand really needs to step it up in India and the eastern countries to get gold through the $1,625 area,” said Jimmy Tintle of GreenKey Alternative Asset Services.
Those who see lower prices said the lack of news and the lower volume gold has seen this month suggests that prices could fall.