"Gold Likely Has a Date With $1,300"
http://www.kitco.com/news/2015-08-19/...ith-1-300-ETF-Securities.html
""As overall sentiment towards gold remains bearish, one research director says market conditions may be calling for gold to push to the highs last seen in early 2015.
“$1,300/oz [gold] is the 2015 high from January, so returning there would only be a reversion back to the upper end of the trading range,” Mike McGlone, research director at ETF Securities, told Kitco News in a phone interview Wednesday. Mike McGLone
“I think it’s going to revisit that level,” he added shortly after the release of the July Federal Open Market Committee meeting minutes.
According to McGlone, one of the main reasons he thinks prices should move to its upper range is because gold futures are currently in backwardation, which he said is rare with precious metals.
“The last time COMEX gold futures were in a similar backwardation condition (1st to 3rd contract) was in December of 2013. Gold rallied from $1,190 in Dec. 2013 to $1,380 in March 2014,” he explained. “Sure it was just short covering but shorts were not at record levels then, as they are now. Backwardation is a sign of excess demand and slack supply.”
Adding to this point, McGlone noted that investor flows – record short positions as well as rising open interest -- are clear signs that a $1,300 price tag on gold may not be far-fetched....."" |
