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Investor sentiments in exchange traded funds (ETF) remain subdued with net redemptions having reached 20.3 tons from January 1, 2013. Outflows have been spread across regions, but the bulk have materialised from US li..

21 Jan 2013

LONDON (Commodity Online): Gold will turn bullish only on a couple of closes above $1695/ounce, although the medium term trend looks bullish, according to Barclays Research.

It has revised the price forecast for Q1 at $1710/Oz and 2013 annual average at $1778.7.

“Gold prices have crawled higher over the past week but lag the rest of the complex. Prices have been aided in part by the weaker dollar, ongoing central bank buying, and some signs of life in the physical market. But ETP flows remain lacklustre and are a key downside risk for prices. Upside potential for gold continues to linger toward the end of the first quarter,” Barclays said in their report.

Investor sentiments in exchange traded funds (ETF) remain subdued with net redemptions having reached 20.3 tons from January 1, 2013. Outflows have been spread across regions, but the bulk have materialised from US listed products. Investor fatigue remains the key downside risk for prices, Barclays report added.On the positive side, Central bank buying and physical buying in Asia is quite supportive.

Gold is building a base over a confluence of support in the 1620 area. We look for a couple of daily closes over nearby resistance in the 1695 area to confirm our bullish view and signal a move higher in range toward 1755, the November highs. Breaking above there would point to an upside extension toward our greater target in the 1800 area. Ultimately, we would need to see a move through 1800 to suggest that the broad multi-month range is coming to an end and make us more bullish toward the record highs near 1921 and then targeting above 2000.

- Resistance: 1725, 1755
- Support 1650, 1620

(Photo Courtesy: Bigstockphoto.com) 


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