Gold could trade sideways next week and multiple factors are expected to influence the price of the precious metal.
Traders will be tracking news coming in from the equity markets, alongside news about a likely global slowdown, the future pace of US stimulus, US interest rates, the Ebola scare in the US and geopolitical tensions the world over.
As many as 10 of 23 analysts polled in a Kitco Gold Survey said they expected gold prices to trade lower next week, while eight predicted that prices will rise and five forecast prices to trade sideways.
Phillip Streible, senior market strategist at RJO Futures, told Kitco: "After getting several days of an upward choppy market, gold should round off a top and track lower into the coming week. This will be a result of improved corporate earnings, lower geopolitical risks and the Ebola virus becoming contained. [I] expect a move back down to $1,200."
Ole Hansen, head of commodity strategy at Saxo Bank, said: "The sharp drop in equities and bond yields this past week and the continued delay to the markets expectation of when - and now potentially if - the US [Federal Reserve] will raise interest rates. [That has] changed the sentiment in the gold market from bearish to neutral."
Hansen said there was another issue the market needs to track. "The Swiss referendum [on whether to increase gold reserves] remains a big [wild card] for the gold market but we need to see a poll to get an idea about the potential market impact of this. A vast majority of recent Swiss referendums were not passed and on that basis the focus from the market has so far been limited."
Gold Ends Higher
US gold futures for delivery in December finished $2.20 lower at $1,239.00 an ounce on 17 October.
Prices gained 1.4% for the week as a whole.
Spot Gold traded flat at $1,238 an ounce on 17 October.