Last Updated : 11 October 2012 at 18:55 IST
Gold may retest $1,750/Oz level: HSBC
Source :Commodity Online
Institutional investors give the impression of losing enthusiasm for another challenge of gold’s $1,790-1,800 an ounce price levels.
- Precious, base metals may trade lower on strong dollar, rise in risk aversion
- Crude oil prices are expected to trade on the positive note on the back of expectation of decline in US crude oil inventories from API along with ongoing unrest in Middle East.
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NEW YORK (Commodity Online): The path of least resistance for gold appears to be lower for the short-term, said HSBC Holdings plc (HSBC) in a commodity research note.
According to the British bank, institutional investors give the impression of losing enthusiasm for another challenge of gold’s $1,790-1,800 an ounce price levels.
The first rush of gold buying on the back of the Federal Reserve’s third round of quantitative easing appears over, and with the euro back below $1.29, gold prices could retreat, possibly to $1,750 an ounce.
“Near-term, traders might want a reduction in long net speculative positions from current high levels before they recommit to gold. None of this changes the underlying bull rally, which looks intact to us. Bulls may need to wait until closer to the U.S. elections before for the rally recovers,” HSBC concluded.
Global gold prices are trading modestly higher in early trading on Thursday as the US dollar index is weaker and crude oil prices are higher. Some light bargain hunting interest has again surfaced following this week’s selling pressure.
December gold last traded up $5.80 at $1,770.90 an ounce on the Comex division of the New York Mercantile Exchange. Spot gold was last quoted up $6.10 at $1,769.25.
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