Gold Prices To Drop As Yellow Metal Consolidates Recent Gains

Gold prices are set to drop next week with the precious metal expected to consolidate recent gains.

As many as 12 of 19 analysts polled in a Kitco Gold Survey said they expected gold prices to drop, while six predicted that prices would rise and one forecast prices to remain unchanged.

Hints that gold may be ripe for a retreat come from the metal's inability to move convincingly over $1,350, said Bob Haberkorn, senior commodity broker at RJO Futures, particularly as prices softened towards the end of the week.

Other analysts said a lack of physical buying in Asian markets, as prices rose, would hinder gold rallies.

Meanwhile, survey participants who predicted higher prices said the near-term technical-chart trend remained fairly robust. In addition, turmoil in several emerging-market economies would buoy gold, they added.

Ken Morrison, editor of online newsletter Morrison on the Markets said: "Gold (is) to trade lower in the week ahead, with a target around $1,300. It's not so much a call on gold as it is a belief commodities in general are set up for a pullback. Bullish sentiment on the CRB Index reached the highest level since April 2011 this week and (a) number of markets are showing signs of 'buyer-fatigue' as we close out the week."

Source: ibTimes-UK