Aug. 19 (MF Global) -- Price Outlook

Gold prices should maintain their upside direction again in today’s session, as they benefit from demand for safehaven. Support will come from uncertainty over the fate of European bond markets, weakness in the U.S. economy, a bullish call on gold from GFMS, and from yesterday’s WGC quarterly supply/demand report. Pressure will be applied by the potential for a CME increase in margins and from overbought conditions, although technicals haven’t offered much impact recently. We look for gold prices to continue rallying in the near-term.