Sellers Active In Gold Futures – RBC

Weakness in the euro, “no help” following weekly jobless claims are keeping “sellers active in gold,” says George Gero, precious metals strategist, global futures, RBC Capital Markets. He says further pressure comes from margin calls being activated because of recent weakness; that hurts not only gold, but platinum and palladium, too. “Usually bullish saber rattles from Iran and now North Korea in the headlines are ignored and last minute sellers continue to actively raise dollars,” he says. Further weakness is possible as key technical support areas were and momentum traders are eyeing lower volume, lower open interest, lower moving averages and lower closing prices. “We now look for $1,500 area to hold with a possible trading range of $1,515 to $1,575,” he says