Friday January 06, 2012 12:24 PM
By a small margin, participants in Kitco News’ weekly Gold Survey see weaker prices for next week, as worries about Europe will dominate headlines and that could weigh on prices as traders return to the dollar as a safe haven.
In the Kitco News Gold Survey, out of 32 participants, 24 responded this week. Of those 24 participants, eight see prices up, while nine see prices down, and seven are neutral on prices. Market participants include bullion dealers, investment banks, futures traders, money managers and technical chart analysts.
Those who see weaker prices said a return to concerns about the European sovereign debt situation will cause prices to fall again, much like it did last year on these worries. The dollar was the preferred safe haven when worries about Europe were raised and the dollar strength has been a weight on the market.
Further, said Carlos Perez-Santalla of PVM Futures, gold could be pressured by “position cleansing for commodities during Index fund rebalancing,” which also takes place next week. Price supports for gold are seen at $1,600 an ounce, then at $1,580.