Gold Bull Market `Still Intact’ Says HSBC’s Respected Steel
Wednesday, 20 February 2013
Gold hovering near $1,601/oz today, as market digests data about a possible global recovery occurring which is sending investors to riskier assets. German business sentiment hit its greatest level in 3 years adding to the optimism.
The yellow metal is being bolstered by Asian bargain hunters and prices usually fall off when their markets close.
Shanghai Gold Exchange most active futures and spot gold contracts fell to their lowest levels in 7 months.
Chartists note the “death cross” formation on the spot gold chart, where the 50-day moving average is dropping below its 200-day moving average, which hints that a pullback could be on the way.
The RSI or Relative Strength Index which has fallen below 30 since late last week shows that the market has been oversold.
Investors will examine the wording in the minutes of the U.S. Federal Reserve’s latest policy meeting, due at 1900 GMT.
James Steel, HSBC analyst, talks about the outlook for gold and silver markets. He speaks with Sara Eisen, Alix Steel and Adam Johnson of Bloomberg and recently just revised his silver forecast.