Market Survey Shows Gold Could Break $1,300

Benchmark gold prices may post fresh two-month highs this week, possibly breaking $1,280 an ounce, if a slump in emerging markets continues to spark a flight into the relative safety of bullion, a CNBC survey shows.

CNBC’s latest survey of market sentiment showed two-thirds of respondents (12 out of 18) expect prices to gain this week, 22 percent (4 out of 18) forecast prices will fall while 11 percent (2 out of 18) expect prices will trade at current levels.

A $10 billion a month cutback in the Federal Reserve’s bond-buying program “though modest, has created currency crises in emerging markets,” said Scott Carter, CEO of Lear Capital. “Gold is still viewed as a safe haven when currencies are being devalued and has increased due to currency volatility.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza