KITCO NEWS - As gold prices erased losses from the week Friday afternoon, one market forecaster questioned whether the momentum can spill over into next week. Investors will be closely watching next week’s gold future options expiration as well as the results of the latest Federal Open Market Committee meeting on Wednesday. Gary Wagner, editor of thegoldforecast.com, said that although gold could breathe a sigh of relief, the metal may be destined for lower prices. 'At this point, we could see a little bounce, but I am expecting more downside pressure [for gold],' he told Kitco News. He added that the key level for the yellow metal right now stands at around $1,038 an ounce. Looking at the charts, Wagner said that any breach of the $1,085 level could lead gold prices towards lows last seen in February 2010. Gold prices in afternoon trading Friday bounced up after hitting a new five-year low of $1,072.30, basis August Comex futures, earlier in the day. Kitco’s spot gold was last quoted up $6.90 at $1,097.30 as of 3:14pm EDT on Friday.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.