ARKO DATTA/Reuters
Gold prices are finding underlying support from ultra-loose monetary policy and rising European debt problems and this could give the yellow metal further strength next week, say most participants in the Kitco News weekly Gold Survey.
In the Kitco News Gold Survey, out of 33 participants, 24 responded this week. Of those 24 participants, 20 see prices up, while two see prices down, and two are neutral or see prices moving sideways.
Put another way, 83.4 per cent were bullish, 8.3 per cent were bearish and 8.3 per cent were neutral.
Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
Several participants who saw higher prices voiced similar reasons to what Carlos Perez-Santalla, precious metals broker at PVM Futures, said: "up QEF (quantitative easing forever), South African mounting troubles, European debt troubles and PBOC (People's Bank of China) actions."
Gold will rise next week, said Adam Hewison, president and chief strategist with INO and MarketClub.com. "Gold has become the new Apple for investors, look for this market to move over $2,000 by the end of the year," he added.
Not everyone is forecasting higher prices. After such a strong rally, a few participants said they were looking for gold to retrace these gains, so they expected prices to be down next week.
Others who are neutral or see prices trading around current levels said gold is in a holding pattern for time being and needs time to digest the current rally.