Easing expectations, European issues may push Gold higher in June
Gold | 2012-06-05 09:38:39
Gold's attraction increased after Friday's weak U.S. non-farm payrolls report, reviving expectations that the Federal Reserve could join the European Central Bank and others in launching another massive easing program, as per latest monthly commodities outlook released by FCStone.
By Paul Ploumis
NEW YORK (Scrap Monster): INTL FCStone anticipates upside for gold during June. Gold’s attraction increased after Friday's weak U.S. non-farm payrolls report, reviving expectations that the Federal Reserve could join the European Central Bank and others in launching another massive easing program, as per latest monthly commodities outlook released by FCStone.
They continued that, “Technically, gold also held critical support between $1,525-$1,530 (an ounce) last month, likely encouraging chart-based buyers to stay the course or add to their positions.”
“We don’t suspect the troubles in Europe will be over any time soon, while at the same time, we think the U.S. macro numbers will worsen over the short term,” the firm added.
“If we are correct in our hypothesis, gold will likely push higher over the course of June, perhaps even testing $1,700-$1,720 resistance, while support should remain intact at $1,520,” FCStone concluded.
