IE Staff
(October 14 – 11:45 ET) –
RBC Dominion Securities Inc.
analysts note that although gold
appears to be overbought, up more
than US$70 in recent weeks. But,
there is an overall bullish sense
surrounding the metal.
They suspect Mining stocks have
more hedging positions to unwind,
which could give gold some more
upward momentum.
Apart from the hedge factor
RBCDS notes that gold is
fundamentally strong – at the
US$315 level, with an upside
ceiling around US$339.
Although it is still quite
volatile, trading spreads have
narrowed from 15% to 5% in recent
days, indicating that the price
is settling into the US$315 to
US$325 range.
-IE Staff
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