Morning Gold Market Report While gold started the new trading week out on a positive track yesterday, the gold market fell back from the highs yesterday and generally continued the weaker tone in the overnight trade. Gold might be somewhat confused by overnight news flow from India as the World Gold Council posted news that Indian 1st quarter gold demand declined by 26% but they also predicted growth in Indian gold imports in the 2nd half of the year in the event that the Indian gold import duty was reduced. While it seemed as if gold was garnering some safe haven support early Monday morning, off a spike down in US Treasury yields and weakness in equities, some buyers might have pushed into gold yesterday because of hopes of an expansion of tensions in the Ukraine. However, the safe haven angle doesnt look to have significant traction this morning and the best and most sustainable fundamental case for a bull market reaction in gold prices is probably straight-away growth and revived inflation prospects. On the other hand, even with a sharp upward print in US PPI readings earlier this month, inflation is hardly front and center in the current equation. Other issues that might impact gold directly ahead are developments in the South African platinum strike but so far gold hasnt seen much spillover buying from sharp gains in Platinum Group metals prices. Gold might see some lift from news that gold derivative holdings yesterday increased by 4,625 ounces. Comex Gold Stocks were 8.065 million ounces up 4,150 ounces. Comex Gold Stocks are at the highest levels since 05/01/2013. We leave the edge with the bear camp as the technical action in gold overnight was poor, the gold market is still holding a vulnerable net spec long and investor interest in gold just hasnt been consistent. To spark a consistent bull track ahead, the gold market needs proof of an impending reduction in the Indian import duty, significant macroeconomic optimism flowing from India and or signs that the Chinese economy is starting to move forward again. In the meantime, we would rather wait for a setback down to consolidation support down at $1,277 to $1,272 in June Gold to get long. Those trading August Gold or intending to move into August position ahead might look to similar consolidation support down at $1,278 to $1,273 to get long for a position play.
Posted on: Tue, 20 May 2014 12:57:11 +0000
Trending Topics
Recently Viewed Topics
© 2015