(December 7 – 12:10 ET) – The outlook is bright for a couple of base metals, but gold is at a crossroads, say the analysts at RBC Dominion Securities Inc.
Aluminum and copper are “showing signs of completing their 4-month long consolidation,” and may start a momentum move to the upside, says RBCDS. Gold on the other hand seems to be sliding back to second-class status, with stock markets chugging ahead and inflation hedges in low demand.
DS forsees long-term price support near US$274.00, noting the 200-day average is currently at US$276.75 and that gold just dipped under that mark. This is a momentum signal to many gold funds.
Yesterday’s announcement by the Dutch central bank that it will be selling 300 tonnes over the next 5 years completes the planned sales agreed to by the European central banks in September. With prices down DS says, “It will be interesting to see whether gold producers will take this opportunity to restructure hedge books.”
-IE Staff
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