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MF Global Daily Report: Precious Metals (Aug, 29, 2011)
Aug 29,2011 10:17CST
industry news
Source:SMM
The gold and silver markets are expected to trade in a mixed-to-lower direction this week with both markets reapproaching last week’s lows near $1,700 and $39/oz respectively.

Aug. 29 (MF Global) -- Price Outlook

The gold and silver markets are expected to trade in a mixed-to-lower direction this week with both markets reapproaching last week’s lows near $1,700 and $39/oz respectively. Our confidence is a bit diminished after strong trade on Friday, however. Pressure should be applied by the lack of further easing signaled on Friday by Fed’s Bernanke, 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 Thursday’s bullish hammer reversal pattern, relatively slow economic growth, ongoing uncertainty over European sovereign debt, and positive comments from Glencore. Silver may receive some benefit from stronger industrial demand. We favor trading the gold market as a negative affair this week. The lack of fresh easing measures could eventually push gold into the $1,580-$1,600 price range.
 

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