Aug. 11 (MF Global) -- Price Outlook
The gold market is expected to trade in a gradually higher direction in the near-term, with prices continuing to progress above $1,800/oz. The market will be supported by uncertainty with regard to European sovereign debt and European banks, ongoing adjustment in risk markets to slow economic growth, and from the Fed’s affirmation of accommodative monetary policy. Pressure could come if exchanges decide to raise trading margins amid heightened volatility and from the potential that Monday’s breakout above the rising channel is a sign of eventual exhaustion (chart below). We favor trading metals as a positive affair today.