Gold prices seen mixed this week

According to the Kitco’s news survey, 18 out of 34 participants including bullion dealers, investment banks, futures traders and technical chart analysts responded, of those 7 saw prices up, 9 saw prices down and 2 saw prices sideways or unchanged.

The market keeps eyes on the European debt situation. Yellow metal is now not attracting the safe-haven flows . However, some analysts and observers saw potential for market participants to return to gold as a store of value.

Zachary Oxman, managing director of TrendMax Futures, sees potential for European worries to escalate again, leading to buying of gold, quoted Kitco.

“I think there are going to be the inevitable credit downgrades in a number of European sovereign nations and a continued worry across the board of currency printing,” he said. “The store-of-value trade, I think, is going to take hold and grab. We’re going to see higher highs and higher lows. We built a very firm base around $1,705 to $1,700 this week.

”Another factor that could hold back gold in the short term, at least, is year-end profit taking and book squaring, analysts said. Speculators in the New York futures market remains net long in gold and silver, even though they have pared that net length from earlier in the year.

“They quietly sell into rallies (to book profits),” Lesh said. “You don’t just wholesale liquidate…We are seeing liquidation by some of the longs, especially on the futures side of thing.”

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Posted by admin on Dec 12 2011. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry