MF Global Daily Report: Precious Metals (Aug. 25, 2011)

Aug. 25 (MF Global) -- Price Outlook

Gold prices could fall further in today’s trade as the market continues to dial back expectations for further easing pronouncements by Fed Chairman Bernanke on Friday. Pressure will also come from improvements in economic data, recent liquidation from non-commercial traders, and the hike in margin requirements in both Shanghai and at the CME. Opposing support will come from ongoing uncertainty over European sovereign debt concerns and from the 38% retracement of the July-August uptrend on the gold chart at $1,751 which was held in yesterday’s trade. We favor trading gold as a negative affair today and anticipate it falling toward the $1,650 level over the next week or two. A lack of fresh easing signals by Bernanke on Friday could send gold down to $1,580.