Gold Futures: room for additional drawbacks
Traders increased their open interest in gold futures to nearly 1.4K contracts on Thursday, extending the erratic performance and in light of preliminary readings from the CME group. In the same line, volume increased for the second consecutive session, this time by around 7.2K contracts.
Gold still goes to $ 1,850 / oz
Thursday’s drop in gold prices occurred against a backdrop of rising open interest and volume, opening the door to a continuation of the recent downtrend and exposing a move to the $ 1,850 per ounce mark and possibly below. Read more…
Gold: a solid strategic argument intact, targets $ 2,300 in 2021 – Goldman Sachs
Goldman Sachs commodities analysts Jeffrey Currie and Mikhail Sprogis said there is still a “strong strategic case for gold” in its latest report.
The U.S. investment banking giant has maintained its 2021 gold price forecast at $ 2,300.
Key quotes (via Kitco News)
“In our view, the structural bull market for gold is not over and will pick up again next year with rising inflation expectations, the weakening of the US dollar and the resumption of retail demand in the US. Emerging Markets.” Read more…
Gold weakens on vaccine progress – Charles Schwab
The recent loss of sparkle in gold futures continued on Thursday as investors assessed reported progress on several COVID-19 vaccines. The yellow metal had seen a formidable rally from the initial pandemic low of March 1450 to the August high near 2100, but the market has since consolidated around the 1900 mark as the gold contract December (GC20) came back down to test the 1850 low end of its recent price range. With the election in the rearview mirror and the stimulus talks on the rear burner, Daily pandemic news continues to be at the center of attention, Joe Schulte of Charles Schwab Briefs. Read more…