Survey of Kitco weeks from 29 / 8 - 02/9/2011: gold gradually stabilized
After weeks of very strong fluctuations significant drop from a record high, gold price forecast next week will not change much by efforts to stabilize the market.
Kitco's survey with 23 analysts, traders, investment bankers about gold price trend next week, 10 people predict prices will rise, 6 suggested that discounts and seven recipients of trends across .
In the week to date 26 / 8, gold on the Comex December peak was 1917.9 USD / ounce, but later reduced to $ 1,705.4 / ounce, and take away most of the efforts to increase in August. Many reasons are given, including the operating profit, CME increased deposit rates by 27% and signs of optimism about the U.S. economy. The SPDR Gold Trust in a short time has exceeded SPDR S & P 500 to become the ETF index fund with a market capitalization also makes the world's largest investor psychology loose with no trend identified sustainability of gold. Closing the week, the price stood at $ 1,797.3 / ounce, down 3% from the previous weekend.
Adrian Day, chief fund manager Adrian Day Asset Management, said that gold prices will trend modestly in the coming weeks. "Prices will rise, but just enough to win back losses this week. We should expect in the weeks that followed with another single spectacular breakthrough before weakening late, "he said.
Rich DeFalco, president of Cooper Wesst Fund Asset Management, is reviewed in the near term gold will be stable at around $ 1,700, but will increase later on and can set a new record is $ 2,100 / ounce.
George Gero, senior metals analyst and vice president of RBC Capital Global Futures Marketss optimistic that the turmoil in the Middle East and other financial problems and political European region will cause gold prices to continue fluctuations.
However, some analysts fear operating profit continued to occur because many people start to panic after two sessions the strongest drop in 31 years this week. Hurricane Irene raging history can also cause people to sell off assets for cash.
America is facing a severe hurricane Irene, is expected to make $ 10 billion damage on the economy already weakened. Obama Wednesday 26 / 8 declared a state of emergency for the state of New York - the home of Comex trading floor. The owner of this floor is a CME is not the statements of the suspended transaction, but said there were contingency plans in case of emergency. CME will notify customers and the investment fund as soon as the changes can occur.