Gold bulls aggressively pressed the case for the precious metal as an alternative to an embattled U.S. dollar amid still fragile economic growth and national debt of over $17 trillion, according to CNBC’s latest market survey of traders, analysts and strategists.
CNBC’s latest poll of gold market sentiment showed 52 percent (12 out of 23 respondents) expect prices will rise this week, 39 percent (9 out of 23) predict declines while 9 percent (2 out of 23) see prices trading around current levels. IG Markets’ latest positioning data shows of the more than 500 clients with open positions, 67 percent expect prices to rise, while the remaining 33 percent expect declines.
“Back in 2011, gold rallied 17 percent in 15 days after the last debt ceiling extension,” said Scott Carter, the chief executive officer of Los Angeles-based Lear Capital. “We are now in a much more contentious climate where the stakes are higher, the debt is greater, and we’ve had more aggressive rounds of easing. The paper is looking a little thinner in 2013, and the bulls are on the rise.”
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