Gold has lost momentum this year and if the situation continues will end lower for the first time in 12 years. Next week, the second quarter kicks off, however the outlook for gold is expected to remain same depending on the issues revolving in the eurozone and loose monetary policy. Also, any escalation of a war type situation on the Korean Peninsula could lead to a spike in gold prices.
In the more short term, here's how a survey from respondents done by Kitco see gold prices moving next week.
17 respondents say gold prices are headed up
17 of 50 respondents in the Kitco gold survey say that gold prices are headed up. Perhaps, they are looking at an escalation in tensions on the Korean peninsula or increasing worries in Cyprus, while betting gold would go higher next week.
6 respondents see gold prices going down
Only 6 of the 50 respondents see gold prices going down next week. It would really need a pessimist to bet on gold prices going down given the problems in Europe and around the Korean Peninsula.
4 respondents are neutral
Again a very difficult bet to make and stay neutral next week. In fact, gold prices are likely to remain volatile next week. Little wonder then that only 4 respondents out of 50 are staying neutral.
Market participants include bullion dealers, investment banks, futures traders, money managers and technical-chart analysts.
India Gold Futures
Gold futures for April delivery was seen trading lower by Rs 103 at Rs 29,340 at 12.30 pm IST.