Gold Price News and Forecast: XAU/USD at risk of a considerable drop – ABN amro [Video]
|Gold: Are the bulls lacking the impetus that was prevalent during the late March to April rally? [Video]
A third positive session in a row has improved the outlook on gold once more. However, the daily candlestick bodies are shrinking which suggests that the market is perhaps lacking the momentum to really drive the price higher for a decisive breakout to multi-year highs again. Today’s early slip lower plays into this too. We remain positive on gold over a medium to longer term basis and holding the support at $1693 helps to bolster this view. However, it is becoming clear that the bulls are lacking the impetus that was so prevalent during the late March to April rally. Read more...
Gold: At risk of a considerable drop – ABN Amro
In a recent client note, ABN Amro Precious Metals Analyst, Georgette Boele, warned that gold prices risk a sharp fall, as the long positions remain very crowded.
“We continue to think that positions are too crowded and that prices are too high to recommend re-entering longs.”
“We also expect a considerable drop in gold prices.”
“Between now and 3 months we expect another risk-off wave in financial markets. We think that investors will close part of their positions (ETF and/or speculative positions) in gold, silver and platinum.” Read more...
Gold trades with modest losses around $1735 level, downside seems limited
Gold traded with a mild negative bias through the early European session and was last seen hovering near the lower end of its daily range, around the $1735 region.
The precious metal failed to capitalize on the previous day's positive move to over one-week tops and for now, seems to have stalled its recent positive move from sub-$1700 levels. The downtick lacked any obvious catalyst and could be solely attributed to a modest US dollar bounce, which tends to undermine demand for the dollar-denominated commodity. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.