Morning Gold Market Report The gold market has mostly favored a - TopicsExpress



          

Morning Gold Market Report The gold market has mostly favored a downside track at the start of the new week. In addition to adverse currency market action, gold has been undermined by a series of bearish analyst opinions, by talk that a key gold mining merger might be on the rocks and by fears of fund liquidation. In the end, the pace of US growth remains disappointing to gold and other industrial commodity markets, but a rising Dollar and negative charts clearly leaves the bear camp in control. Another issue that might weigh on gold in the short term is news that platinum mining companies raised their wage offer to striking workers in South Africa, as the presence of negotiations might be seen as a precursor to a wage deal. In the short-term, gold remains a physical commodity in need of stronger growth signs and consistently positive equity market action. The US economic report slate is active today, with existing home sales expected to come in a little weaker and a Richmond Fed Business activity Index result due out later this morning. The worlds largest gold ETF saw their gold holdings decline by 3.00 tonnes on Monday, the first time that their holdings have fallen 3 straight sessions since December and the holdings have now reached their lowest holdings since January 28th. Comex Gold Stocks were 7.902 million ounces down 15,536 ounces. Stocks have increased 11 of the last 20 days. We cant deny a temporary retest of the early April low down at $1,277.40 in the June contract, and we remain bearish toward June Gold as long as the market holds below $1,307 on a closing basis. As in other metals markets, gold showed some increase in volume on the last approach of $1,277 and therefore our pick for a solid low this week, is $1,272 to $1,275. Pushed into the market we would be a seller of minor rallies, especially with todays US headline report expected to be a little soft!
Posted on: Tue, 22 Apr 2014 13:49:51 +0000

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