Commerzbank: Gold To Test $1,200; ETF Outflows Continue
Gold likely
will test the $1,200-an-ounce level, and outflows continue from global
exchange-traded funds, says Commerzbank. Spot metal has bounced so far
Tuesday, trading up $6.50 to $1,213.70 an ounce around 7:40 a.m. EDT.
“A somewhat weaker U.S. dollar this morning is preventing gold from
shedding more of the gains it achieved late last week and from nearing
the $1,200-per-troy-ounce mark again,” Commerzbank says. “It is not far
off this threshold, however. We still think it is likely that this
psychologically important mark will be tested. After all, the headwind
faced by the gold price is not really abating as yet.” Analysts cite
Bloomberg data showing that gold ETFs posted an outflow of more than
seven tones Monday. “Holdings have thus already been reduced by almost
16 tonnes since the beginning of the month,” Commerzbank adds.
FXTM: ‘Medium- To Longer-Term Outlook For Gold Remains Bearish’
The outlook for gold
remains bearish, says Lukman Otunuga, research analyst at FXTM. The
metal has drawn support early Tuesday as the U.S. dollar eases. “While
the precious metal could struggle higher in the near term if the dollar
continues to weaken, the medium- to longer-term outlook for gold
remains bearish,” Otunuga says. “It is becoming quite clear that the
dollar is starting to outshine gold as a safe-haven asset while
expectations of higher U.S interest rates have translated to further
pain for the zero-yielding metal.” The analyst also says gold looks
bearish on the technical charts, with consistently lower lows and
highs. “Sustained weakness below $1,213 could invite a decline towards
$1,200,” Otunuga says. “Alternatively, a solid breakout and daily close
above $1,213 may trigger a rebound towards the $1,224 lower high.” Spot
gold was $6.50 higher to $1,213.70 an ounce around 7:40 a.m. EDT.
http://www.miningnewspro.com/en/News/233090/RBC`s Gero: Comex Gold Gets Short-Covering Bounce