Other Stories

Gold prices have rebounded on Obama victory and uncertainties over the fiscal cliff but Indian demand hasn't picked up ahead of key festivals on softer Indian Rupee. US CFTC data shows managed funds reducing net long ..

12 Nov 2012

LONDON (Commodity Online): Barclays Research which had admitted last week that it had gone wrong in its estimation of gold prices in 2012, in its latest update has pointed out that the yellow metal is now medium term bullish supported by Obama Victory and uncertainty surrounding the fiscal cliff.

On the other hand, major gold purchasing just before Diwali is not indicated on softer Indian Rupee andi importers have refrained from purchases occassionaly buying on dips, Barclays report pointed out.

Price forecast: Q4 2012: $1810/oz, 2012 annual average: $1691/oz

Physically backed gold ETPs have continued their crawl higher and struck a new high during the week at 2613 tonnes. Although holdings eased less than a tonne on Friday, they completed the week with positive momentum, continuing their three month streak.

The latest CFTC data shows that tactical investors scaled back their exposure to Comex gold for the fourth straight week, taking net fund length to a new low since August. Net non-commercial positions fell on the back of long liquidation (-11k lots) which more than offset short covering activity (1k lot). Speculative positioning as a percentage of open interest has fallen to 36%, which is below the all-time high at 51% and lowest since August 2012.

Support: 1718, 1700 , Resistance: 1745, 1775 , Technical strategy: Medium term: bullish

Click on the image to reload it
Click to reload image