Is this technical correction in metals offering a fundamental acquisition opportunity?
*Reuters, by Amanda Cooper & Jan Harvey, July 28, 2010:
''Gold steadies under $1,160
Gold held near $1,160 an ounce in Europe on Wednesday, steadying after
hitting three-month lows the day before, helped by a degree of investor
nervousness over the U.S. economy and by strong demand from top
consumer India.
As a lot of the fear surrounding the euro zone debt crisis recedes and
recent upbeat earnings allay some concern about the outlook for the
global economy, gold is likely to encounter more weakness, especially
after breaking key technical barriers.
Spot gold was bid at $1,158.75 an ounce at 1408 GMT (10:08 a.m. ET),
against $1,159.65 late in New York on Tuesday. U.S. gold futures
for August delivery fell $0.20 an ounce to $1,157.70.
Prices fell nearly 2 percent on Tuesday as selling of commodities in
the wake of weak U.S. consumer confidence data pushed the metal through
key technical support levels.
'For now, the metal looks very bearish technically and to be honest,
all these moves since yesterday are heavily technically driven,' said
Standard Bank analyst Walter de Wet.
'I think it is going to fall more, but longer term, we still see the
bull market intact. Underlying, the same issues that have pushed
gold higher still remain,' he added.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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