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.”
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