MF Global Daily Report: Precious Metals (Sept. 28, 2011)

Sept. 28 (MF Global) -- Price Outlook

Precious metals prices are anticipated to gain in the near-term, with gold approaching $1,700/oz within a week or two and silver potentially stretching to $37.00/oz. Support will come from hopes of a grand bargain in Europe, increased stabilization in financial markets, and from favorable technical factors. Downside risks come mainly from the selloff that engulfed risk markets late yesterday afternoon following adverse comments on Goldman Sachs and from a short-term bearish seasonal pattern in gold. We favor maintaining our positive bias in today’s trade.