Gold expected to drop next week on U.S. dollar strength

As many as 16 of 26 analysts polled in a Kitco Gold Survey said they expected gold prices to trade lower next week, while seven predicted that prices will rise and three forecast prices to trade sideways. Frank Lesh, senior broker and futures market analyst at Futurepath Trading, told Kitco new highs for the dollar would results new lows for gold. US gold futures finished $22.20 lower at $1,192.90 an ounce on 3 October.

There is no reason to bargain hunt. Right now I’d rather own mould than gold. At least mould will reproduce.

Adam Klopfenstein, market strategist with Archer Financial Services

Prices are down 1.9 per cent for the week as a whole. The greenback struck fresh two-year and four-year highs against the euro and a basket of currencies on 3 October, in the wake of a strong US jobs report. The world’s leading economy added 248,000 jobs in September, beating expectations. The American unemployment rate dropped to 5.9% in September, from 6.1 per cent in August, falling below 6 per cent for the first time since the recession.

Business gold price