Aug. 10 (MF Global) -- Price Outlook
The gold market is expected to trade in a mixed direction in the near-term. Support will continue to come from uncertainty and volatility in financial markets, flight to safety following the S&P downgrade, and the possibility that Europe has to monetize its debt following purchases of Spanish and Italian bonds. Opposing pressure could come from the possibility that risk trades follow through with yesterday’s late recovery, the gold market’s closing hold at $1,744 Fibonacci resistance ($1,741.50 in GCZ1), and from the possibility that the exchange raises trading margins amid heightened volatility. We favor trading metals as neutral affairs today.