The outlook for gold price direction next week is cloudy, as the weekly Kitco News Gold Survey shows no clear majority view for gold.
Survey participants who see higher prices said they thought the sell-off in prices this week was overdone and that the market will hold support levels. "Gold prices may see a slight rebound from the lows seen last week after showing a disappointing reaction to the Fed's (Federal Reserve) announcement to extending Operation Twist. We should see a rebound as gold gets to a value area where traders will re-enter for safety and value," said Phillip Streible, senior commodities broker, R.J. O'Brien.
Those who see weaker prices cited strength in the U.S. dollar, which is pressuring commodities across the board. The technical price outlook short-term is also negative, which could weigh on gold. A test of the May lows in the $1,520 an ounce area might be in the cards, especially if the dollar index can continue to rise. . .View Full Article