TheNews

According to the weekly Kitco gold survey, both Wall Street and Main Street are expecting to see higher prices in the near-term; however, the analysts surveyed have a stronger upside bias.

Sean Lusk, director commercial hedging division at Walsh Trading said that gold has the potential to pop higher next week but prices will remain within the $100 range between resistance at $1,230 an ounce and $1,130 an ounce. “Right now there is a lack of conviction to take gold either way; I don’t think that is going to change,” he said.

Bart Melek, head of commodity strategy at TD Securities, said that although there is a lot of important economic reports to be released next week, unless the data is widely outside of expectations, it won’t change the perception that the Fed will still hike rates in the second half the of year. “I just don’t think we will see a break out next week,” he said. “So long as the data is not horrible the expectations will remain that the Fed will raise interest rates in September,” he added.

George Gero, senior vice president at RBC Wealth Management, said that he is slightly bullish on gold next week as the market has already priced in higher interest rates, limiting gold’s downside; however an increase in wage, in Friday’s employment report could be seen as positive for gold because it is considered inflationary.

Ronald-Peter Stoeferle, fund manager at Incrementum AG and author of the In Gold We Trust report, agreed that the wage data in the employment report will be an important indicator for the gold market in the near-term.




the source