Commodities | Mar 07 2013
Gold looks to be consolidating in a narrow range. It feels as if the metal is torn between those liquidating the metal, searching for higher yielding assets, and those buying the metals because it looks cheap. As we have mentioned we have always remained concerned that the ETF holding in the metal will become its Achilles heel. So many investors piled into the product when we had significant risk on the table, however as geopolitical/ economic risks start to unwind the reasons to hold the precious metal change.
Chart Point:
Technically the picture for gold remains the same: we are in a tight range and as long as the low at US1535 remains in play this represents good support. Before entering into a long position we would look for a bounce. We suggest the range US1535 through to US1645 is now confirmed and perhaps also the bigger range of US1535 through to US1735. We still like the dips.
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