Friday, 17 November 2017 03:30 WIB |
GOLD CORNER |Gold OutlookGold Corner
Gold bears beware, prices could be setting themselves up for a 'strong finish' this year, says one analyst.'
'I remain constructive on GLD in the near term, expecting a strong finish to the year,' Boris Mikanikrezai, precious metals analyst at FastMarkets, wrote in a Seeking Alpha post on Wednesday.
When forming his analysis, Mikanikrezai looked at net speculative positions on the Comex and exchange-traded fund (ETF) holdings.
œGold witnesses some upward pressure as the macro backdrop turns increasingly friendly for the PM complex, he said.
The most recent CFTC data showed that money managers raised their net long position for the first time in eight weeks between October 31-November 7, while spot gold prices advanced 0.6% from $1,270 per ounce to $1,278, the strategist pointed out.
œThe net long fund position - at 483.96 tonnes as of November 7 “ rose 13.46 tonnes or 3% from the previous week (w/w). This was driven exclusively by long accumulation (+14.54 tonnes w/w) and marginally offset by some short rebuilding (+1.09 tonnes w/w), he said.
The other half of Mikanikrezai™s analysis revealed that ETF investors were not jumping at the opportunity to increase their gold holdings between November 3-10, œin spite of friendlier macro forces.
According to the strategist, œthe GLD market remains in a ˜buy on the dips™ mode.
GLD is the ticker symbol for the world™s largest gold-backed ETF, SPDR Gold Shares, which is traded on the New York Stock Exchange.
On Wednesday, gold prices gave up all overnight gains as the U.S. dollar index rose from its daily lows.
œA batch of important U.S. economic reports released earlier today provided a brief lift to precious metals prices. However, the greenback™s bearish influence proved too strong on this day, said Jim Wyckoff, Kitco™s senior technical analyst.
Source: Kitco News