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Survey Participants Have A Mixed Outlook For Gold Prices Next Week
Friday October 26, 2012 12:07 PM

Survey participants are split over the direction for gold next week, as some see prices holding in a range and nearly just as many seeing higher prices.

In the Kitco News Gold Survey, out of 33 participants, 24 responded this week. Of those 24 participants, nine see prices up, while five see prices down, and 10 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 prices moving sideways or are neutral on price direction said there's a fair amount of uncertainty still in the markets for next week and that could keep people on the sidelines and prices trapped in a range. The month ends on Wednesday, there's the October US unemployment report on Friday and the US presidential election is on Nov. 6.

Gold prices dipped under $ 1,700 an ounce briefly this week, but have not followed through on the downside. While that's a potentially price-supportive sign, Mark Leibovit, editor of the VR Gold Letter, said he's still waiting for a better signal, so he's neutral right now.

"(I'm) still cautious until a technical bottom is confirmed. We have the seasonal period for a low, but (we) need that confirmation, "he said.

Those who see higher prices said the yellow metal is due for a rebound. "Gold (is) very oversold and will likely bounce with the equity markets next week," said Spencer Patton, president of Steel Vine Investments.

Others mentioned the general backdrop of ultra-loose monetary policy as continuing to underpin gold prices.

Participants who see lower prices said a stronger US dollar and a weakening trend for gold will continue to be a theme in the market next week.

By Debbie Carlson of Kitco News dcarlson@kitco.com

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Allen Sykora contributed to this story.