While no one needs a survey to know what happened to gold and silver this week, let’s take a look at what the smart people are predicting for next week? Will the spot price reflect the eye-popping physical demand we saw this week, or will enough futures traders wade back in to enable “paper gold” to dictate the price?
Kitco had 27 respondents to their survey. Of those, a solid majority (17) saw prices continuing the rise next week, while only four forecast a drop in prices. Six respondents expected the narrow range established Thursday and Friday to continue.
Bloomberg had 34 respondents to their survey, and it comes out pretty evenly matched between bulls and bears, 15 to 14. Five experts expect sideways trading for next week.
Looking ahead to next week:
Major bullish factors:
- Foremost, the mind-boggling physical demand from all over the world.
- The flash crash last Friday and Monday may have been “too far, too soon”, according to some analysts.
- Even if gold is destined to go lower, we should see a positive correction in the very near term.
Major bearish factors:
- Gold ETFs have been dumping gold like pouring water on a fire, and look to continue.
- The U.S. stock market is expected to resume its record-breaking ways, sucking funds into equities.
- This week’s collapse in gold prices signals the start of a bear market
Those experts on the fence say that volatility is just too high to be able to call a trend one way or the other for next week.