MF Global Daily Report: Precious Metals (Sept. 15, 2011)

Sept. 15 (

MF Global

) -- Price Outlook

The gold market should maintain its mixed-to-lower direction in the near-term with prices falling toward the $1,750/oz price level over the next week or two. Pressure will come from ongoing support for Greece from German and French policymakers, increased risk appetite, and adverse technical factors. Silver continued to probe the lower boundary of a failing bullish triangle pattern which may add technical pressure to the metal. Opposing support will be offered from the likelihood that Greece faces expulsion from the euro once again, weakness in economic data, growing purchases of gold by India, and potential supply issues in Peru. The Harrisburg PA debt payment is due today and will also see some market attention. We’re frustrated by the slow pace of the gold market’s decline, but favor maintaining our negative trading affair bias.