Gold likely to hold up until any Syrian strike
Global Scrap News | 2013-08-29 13:27:10
Any corrections lower in gold may not last as long as geopolitical tensions surrounding Syria persist, said Edward Meir, commodities consultant with INTL FCStone.
By Paul Ploumis
NEW YORK (Scrap Monster): Any corrections lower in gold may not last as long as geopolitical tensions surrounding Syria persist, said Edward Meir, commodities consultant with INTL FCStone.
As of an overnight research note, he pointed out that the Relative Strength Index reading on silver was over 80 and looked "particularly frothy," while gold's reading was 72.
"However, we think that any decline will likely prove to be short-lived, at least until the Syrian strike is out of the way," Meir added.
"In addition, we may be seeing a new trading paradigm setting in of the next few days, one whereby investors sour on stocks and file back into commodities, with oil and gold likely being the two favorites in the group," he added.
Comex December gold pulled back for a while overnight but then went on to a peak of $1,434 that is its strongest level since May 14. October crude oil peaked at $112.24 a barrel. On a spot continuation chart, this is the strongest level since May 2011.
