(October 19 – 12:00 ET) – Gold
is backing off to a corrective
phase after a weeks of heady run-
ups say analysts at RBC Dominion
Securities Inc.
Gold is trading nervously and
this morning’s rather benign
Consumer Price Index report in the
U.S. is driving further selling,
say RBCDS analysts. Actual demand
has been light while the
speculators have been pushing
the gold price all over the map
in recent weeks and producers have
been buying it back in an effort
to stablize the market.
RBCDS is expecting more buy-
backs as the price weakens further.
It expects upside resistance to
kick in between US$314.60 and
US$320.00. Gold currently trades
around US$307. Overall, RBCDS
remains bullish aboput gold. It
will have to break US$2.95 to
change its opinion.
RBCDS suggests that the markets
for aluminum, copper,nickel and
zinc are in the early days of their
own corrections. While crude oil
should start retracing some of its
recent gains if it closes below
US$24.98 at week end.
-IE Staff
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