UBS on gold … prices managing to hold above the $1280 support area is encouraging
This snippet from UBS on gold seems particularly pertinent given where the gold price is as I post.
- we think near-term pressure on gold is understandable
- prices managing to hold above the $1280 support area is encouraging
- this consolidation as an opportunity to gradually build a strategic position in gold
- But for now, the extent of the dovish shift in Fed expectations has made gold vulnerable to improvement in the data during a time when physical markets tend to be quieter.
- physical demand out of China has been weak this year
- interest out of India has been resilient
- Central bank activity has been another source of support for gold - strong net buying from 2018 has extended into this year
Daily chart :