Sept. 19 (MF Global) -- Price Outlook
Precious metals markets may trade firmly in the first day or two of the week but we think that the recent downtrend will remain in place for another month or two. Near-term support will be offered by Friday’s bullish hook reversal pattern, ongoing tensions in the Eurozone, the expectation that the Fed conducts some form of monetary easing, and the likelihood that Pres Obama proposes spending cuts that are unlikely to be passed. We think that prices could reverse back to the downside later in the week as the Fed’s easing falls short of QE3, risk appetite gains, metals investors remain uninspired, and longer-term technical factors remain negative. We would look to trade the market from the long side early in the week and reversing to the downside in the second half.