Sept. 16 (MF Global) -- Price Outlook
Precious metals are expected to maintain their mixed-to-lower trend in the near-term, with gold falling toward the $1,750/oz price level. Silver could reach support at $38.76 from the Aug 25th low. Metals weakened yesterday on signs of increased risk appetite, which could continue into next week’s FOMC meeting and/or even the end of the month/quarter. Additional pressure will come from low expectations for QE at next week’s FOMC meeting, and from technical factors which argue for a move down to $1,700-$1,750/oz in our opinion. The bullish side will look to weakness in economic data, growing purchases of gold by India, and potential supply issues in Peru. We favor maintaining our negative trading affair bias in today’s trade.