Gold may be on track to test $1800 again: Saxo Bank
Wednesday, 14 November 2012 | 00:00
Gold prices have got boost after the US election results and having found good support, stabilizing above $1700
levels, the yellow metal may climb to importance resistance level of $1800 again, according to Ole S Hansen, Head, Strategy at Saxo Bank.
Having reached not breached important support levels below US $1670, traders have begun to rebuild speculative longs which has been reduced by one-quarter during the previous weeks.
“It is worth noting that during this period of long liquidation the speculative gross short position did not increased which shows a fundamental lack of interest in going outright short the yellow metal,” Ole S Hansen said in a weekly report.
“This above mentioned long liquidation has left both silver and gold in much better positions to react to a change in the technical or fundamental outlook and we believe the direction of least resistance over the coming weeks will be to the upside. Having found support and stabilised above 1700, a move above 1740 should now open the way back towards important resistance at 1800 - at which level gold has corrected three times during the last year.”
The DJ-UBS commodity index showed a small increase last week, the first in three, as precious metals and energy just managed to off-set losses in industrial metals and agriculture, where especially softs and grains came under some selling pressure
Source: Commodity Online
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