INTL FCStone: Gold still has the capacity to surprise

UNITED STATES February 12 2015 8:39 PMTweet
NEW YORK (Scrap Register): Despite gold’s recent selloff, INTL FCStone analysts said they still think gold could surprise markets.

"The fact that gold has been selling off for much of this week despite a lack of progress with regard to the Greek issue suggests that the markets are either expecting an ultimately positive result, or that they are not that concerned about a ‘Greek rupture’ and may be discounting the country’s possible exit as a net positive,” said Edward Meir of INTL FCStone in a market note Wednesday, adding that looming US Federal Reserve rate hikes and stronger US equities are making it harder for the metal to gain traction.

"Despite all this, we think that gold still has the capacity to surprise, especially if the Greek negotiations fail, raising the specter of default,” he adds.