MF Global Daily Report - 2011/10/12 Precious Metals

Oct. 12 (MF Global) -- Price Outlook

Precious metals prices are likely to maintain their recent uptrends in the near-term. Gold is expected to reach $1,705 over the next week or two while silver may extend to $34.00. Focus will remain on daily developments in the Eurozone as well as support from an increase in the COT non-commercial net long and from the return of Chinese buyers in the physical market. The downside will look to pressure from the $1,705 resistance level and from the potential that economic data remains weak. We favor trading precious metals as positive affairs today.