MF Global Daily Report: Precious Metals (Aug. 26, 2011)

Aug. 26 (MF Global) -- Price Outlook

The gold market should continue to trade lower over the next couple weeks notwithstanding any short-term rallies caused by bargain-hunting. The market should remain under pressure from the likelihood that no new stimulus is introduced today, recent improvements in economic data, liquidation in gold by non-commercial traders, and the hikes in gold’s margin requirements. Support will be offered by positive comments from Glencore, uncertainty over European sovereign debt, and technical levels at $1,650 and $1,700. We favor trading gold as a negative affair in the near-term.