FOMC Meet on Wednesday unlikely to give stimulus to Gold prices
In its weekly report, Barclays said its economists do not expect any change in its policy stance at the FOMC meet of 31 July and the $85 bn per month purchase rate to remain steady.
Gold continues to remain bearish although a short covering rally sparked by more-dovish-than-expected comments from the US Federal Reserve, weak dollar and US treasuries provided the much needed support for gold last week. However, growth in ETF holdings continued to remain muted although silver ETFs witnessed increased inflows this year, according to Barclays Research.
In its weekly report, Barclays said its economists do not expect any change in its policy stance at the FOMC meet of 31 July and the $85 bn per month purchase rate to remain steady.
"Gross shorts have been scaled back, and on a positive note, prices' trading above $1300/oz neutralises the minimum amount of cash negative ETPs. Flows stabilising would bode well for gold; however, even above $1300/oz, they remain negative. We continue to believe prices are unlikely to maintain their upward momentum in the seasonally weak period for demand unless US macro data deteriorate, driving further short covering-led support."�
Price forecasts: Q3 13:$1200/oz, 2013: $1393/oz�
Technical strategy: Bearish -Near-term topping signals against the 1350 area in gold point to a move back in range toward targets in the 1260 area.�-Resistance: 1350, 1372, Support: 1300, 1270.�
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