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Gold “Could See Deeper Downside Move” But “Uptrend Remains”
Posted by Wealth Wire - Tuesday, October 16th, 2012
Spot market prices to buy gold regained some ground Tuesday morning after dropping to a one-month low below $1730 per ounce, gold’s lowest level since the US Federal Reserve announced open-ended quantitative easing last month.
Gold prices rose to $1743 per ounce ahead of US trading, while stocks and the Euro also rallied following news that suggested Spain is prepared to request a bailout.
“We see resistance [for gold] now at $1758 with risk for a deeper downside move,” says Russell Browne, technical analyst at bullion bank Scotia Mocatta.
“Longer term [however],” adds Commerzbank technical analyst Axel Rudolph, “gold will remain in its multi-year uptrend while staying above the $1522 December low.”
Bullion holdings backing the world’s biggest gold ETF SPDR Gold Shares (GLD) fell back from record highs yesterday, dropping 6.6 tonnes to 1333.9 tonnes.
Silver prices meantime climbed back above $33 an ounce shortly before the US opened, while other commodities were broadly flat and US Treasuries fell.
Spain is prepared to ask for a bailout from the European Stability Mechanism,…
