(September 1 – 09:30 ET) – Economists at RBC Dominion Securities Inc. remain skeptical
about the future of gold.
DS says that gold would have to jump above US$263.10, and the TSE Gold &
Precious Minerals Index will have to get above 5604, before they see any real
turnaround potential in the market.
Gold closed yesterday up US$1.75 at US$255.55 and the index finished at 5177. The index hasn’t been above the 5600 level since May.
DS is also fairly skeptical about comments out of China, indicating that the
country needs to boost its reserves from 394 tonnes to 1000 tonnes. It says
the market has heard this before but the talk never became action. Nor has
China committed itself to an exact date.
In the short-term DS remains mildly bullish, but only up to US$260.80, and not
above its own turnaround indicator.
-IE Staff
For more please see:
www.rbcds.com