Gold had an up and down week this week, but finished slightly in the red side, according to the London fix. The London AM price fix for gold on Monday, February 25 was $1,592.50/oz, and the PM price fix for Friday, March 1 was $1,582.25 for a loss of $10.25.
What does all the news and happenings of this week portend for the price of gold next week? Every Friday afternoon, we take a look at the gold market surveys from Kitco and Bloomberg. They both survey futures traders, technical analysts, bullion wholesellers, and investment bankers for their take on what’s in store in the week ahead.
Twenty nine experts responded to Kitco’s March 1 gold market survey. Thirteen see higher prices next week, eight see prices moving sideways/choppy, and another eight see lower prices for gold next week.
Thirty two experts responded to Bloomberg’s weekly gold market survey, where there was a split decision: 15 bulls to 14 bears, and 3 seeing choppy movement with no clear direction.
On the whole, the Kitco respondents are less upbeat this time, with slightly less than half those surveyed (44%) bullish, and double last week’s participants are bearish (28% to 14%).
Nearly one in five of the experts in Bloomberg’s previous survey thought there would be little action for 2/25 to 3/1, and were pretty much right. However, today’s group definitely sees action for next week. The question is, which direction? There is almost a perfect split between bulls and bears among the 32 responses in this group, with only 3 seeing little movement.
Major bearish factors for gold next week will be the continued enticements of the equity market on good economic news (at least in the U.S.), bearish technical charts, the strength of the dollar, and gold’s recent inability to hold a rally above $1,600/oz.
Major bullish factors for gold is physical gold sales (including robust demand for gold coins,) the belief that gold is oversold at current levels, the appearance of a bottom forming in the $1,550/oz range (which should result in an uptrend), and of course continue quantitative easing around the world.