Gold prices to contend with geopolitical tensions and economic news next week.Reuters
Gold prices could trade sideways next week with the precious metal having to contend with geopolitical pressures and economic news.
As many as nine of 22 analysts polled in a Kitco Gold Survey said they expected gold prices to trade higher next week, while six predicted that prices will drop and seven forecast prices to trade sideways.
Any further escalation of geopolitical tensions in Ukraine, Iraq or the Middle East will boost the yellow metal's safe-haven status.
Prices will also take their cues from the outcome of 4 September's ECB meeting and a US nonfarm jobs report due on 5 September.
Adrian Day, CEO, Adrian Day Asset Management said: "With heightened tension in Ukraine and the possibility of a US strike on ISIL (Islamic State of Iraq and the Levant) inside Syria, with all that might mean, there will be a strong bid under gold. This follows a period when geopolitical tensions appeared to be easing, so we are looking for gold to continue to recover from early August sell-off."
Richard Baker, Editor, Eureka Miner Report, said: "Other than geopolitical spurts, it is unlikely that gold can sustain higher prices in a broadly declining commodity market. My present commodity value of gold when compared to oil, copper and silver is $1,215 suggesting the yellow metal is carrying a $70 per ounce premium to this aggregate. As this premium declines, gold will approach its commodity value in the range of $1,100 to $1,210 per ounce by year-end."
Gold Ends Higher
US gold futures for delivery in December finished $3 lower at $1,287.40 an ounce on 29 August.
Prices inched up 0.6% for the week as a whole.
Spot gold traded 0.3% lower at $1,286 an ounce.
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