Gold: Mitsubishi’s Butler: Repositioning Pushes Gold Higher
Gold has a firmer tone on technically oriented buying and as some investors reposition, says Jonathan Butler, precious-metals strategist with Mitsubishi Corp. As of 7:50 a.m. EDT, Comex December gold was up $10 to $1,293.40 an ounce. “I think repositioning is a simple explanation for what we’re seeing,” Butler says. “We’ve seen equities do very well, U.S. equities in particular the last few days. We’ve seen strength in the U.S. dollar. I think there is a re-evaluation going on as to whether that can be continued and given that gold is looking quite cheap at current levels, maybe some repositioning and getting back in.” Technically, gold is back above the 50% retracement of the move from the December low to the March high, around $1,287, he adds. Also, the area from $1,275 to $1,280 has been a chart support area. “The move higher today has probably led to some technical buying,” he adds. |
