GOLDWAY: weekly Gold Analysis Friday March 28, 2014 : Weaker Gold Prices Seen For Next Week

Sabtu, 29 Maret 2014

weekly Gold Analysis Friday March 28, 2014 : Weaker Gold Prices Seen For Next Week

Gold prices may continue to exhibit weakness following two weeks of softer values, said a majority of participants in the weekly Kitco News Gold Survey.

In the Kitco News Gold Survey, out of 33 participants, 22 responded this week. Six see prices up, while 12 see prices down and four see prices trading sideways or neutral. Market participants include bullion dealers, investment banks, futures traders and technical-chart analysts.

Last week, a nominal number of participants were bearish. As of noon EDT, Comex June gold prices were down about $43 an ounce on the week.

Those who see weaker prices said there are few bullish catalysts to propel gold higher.

“Gold futures should remain under pressure as long as the issues with Russia and the Ukraine fade and investors remain focused on the thoughts of tapering (stimulus) and rising interest rates,” said Phillip Streible, senior market strategist at RJO Futures.

Participants who see higher prices next week said they expect gold to hold this week’s lows that as of 11:45 a.m. EDT were around $1,286.10 for the June Comex contract.

Kevin Grady, owner of Phoenix Gold Futures and Options, said he expects buyers will enter the market at these lower levels.

“I still believe that the physical market is directing our underlying price…. In the gold forward rates we noticed that the physical tightness dropped off as we approached the $1,400 level. This situation put the shorts in control.

We have noted that the rates have gotten tighter as we broke the $1,300 level. It appears that the price-sensitive buyers are back. We need to hold our major support level of $1,270 for gold to rebound,” Grady said.

Darin Newsom, senior analyst at Telvent DTN, said he expects prices to trade in a sideways pattern next week after the recent price fall. “The June contract (is) testing support at $1,289.50. This price marks the 50% retracement level of the previous rally from $1,186.70 through last week’s high of $1,392.20. Next week could see the contract consolidate,” he said.