Sept. 29 (MF Global) -- Price Outlook
Today’s trade in precious metals is a tough call after yesterday’s disappointing action. They will be supported by bullish reversal patterns on the charts made on Monday, the possibility of a grand bargain in Europe, and from signs of bargain-hunting taking place in the silver ETF. Opposing pressure could come from fears that the short-selling ban is preventing European bank stocks from finding a lower equilibrium, yesterday’s disappointing technical action, and from a bearish seasonal pattern in gold that is in place until October 19th. We favor trading metals as neutral affairs in today’s trade.