Scrap Monster
Kitco November 04, 2015 02:02:36 AM

Gold Still Too Risky, USD Has More Upside To Go – RBC Capital Markets

Paul Ploumis
ScrapMonster Author
The latest research note released by RBC Capital Markets states that gold still remains risky. It is unsure as to whether the yellow metal has bottomed out.

Gold Still Too Risky, USD Has More Upside To Go – RBC Capital Markets

(Kitco News) - Gold remains risky and still needs to spend more time in a bottoming range, said analysts from RBC Capital Markets in a research note released Monday afternoon.

“The trend on gold has stabilized over the last three months, but it is not enough to call it a bottom or buy,” said Bob Dickey, technical analyst for the bank.

“After a prolonged drop like this, more time needs to be spent in a bottoming range, or a breakout through the resistance at 1200 is what it would take to change the trend from bearish to neutral or bullish,” he added.

According to Dickey, the risk is still high on gold and the metal may ultimately finds its low in the $1,000 area.

Looking at the U.S. dollar, which has been one of the main factors pressuring gold, he said it may edge even higher.

“The sideways trading of the past years appears to be a normal consolidation and the possible mid-point of a longer-term uptrend,” he noted.

“The technical target for the dollar is to the 115-120 area.”

Courtesy: Kitco News

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox
Facebook Twitter Linkedin