voda schreef op 22 augustus 2013 15:03:
Gold inches up awaits Federal minutes for clues on stimulus
Reuters reported that gold reversed early losses to edge higher as traders awaited more clarity from the US Federal Reserve on whether it would begin curbing its commodities friendly economic stimulus from next month.
Sentiment towards the precious metal among investors and traders seems to be more positive now than what it was earlier this year as many believe the worst is over and have begun injecting money again into gold backed funds.
Bullion has lost nearly a fifth of its value this year on stimulus worries and outflows from exchange traded funds. It fell to a three year low of USD 1,180.71 an ounce in June but has since recovered about USD 200. Spot gold inched up 0.1% to USD 1,372.24 by 0250 GMT and was near two month highs.
Mr Helen Lau senior analyst for China's commodities sector at UOB Kay Hian said that "Our clients are tempted to add more exposure to gold. It's because of the recent gold price increase, US dollar weakness and strong consumer demand in China. Certainly they are not bearish on gold any more. We now think the downside pressure (on gold prices) is very limited."
Several brokerages including Goldman Sachs have cut their price outlook for gold since the beginning of the year. But ANZ on Tuesday was one of the first to lift its forecast.
ANZ analysts said that we have revised our precious metal forecasts higher near term as the rebound since the end of June has occurred earlier than we originally anticipated. They raised their year end price forecast to USD 1,380 from their earlier view of USD 1,300.
They said that the bounce in gold prices appears to be more sustainable coinciding with a reversal of ETF outflows. We also see little downside to physical demand with China continuing to buy strongly.
Source - Reuters