Gold: MKS (Switzerland) S.A. describes gold as “vulnerable” but also anticipates the metal will hold in a $1,143-$1,165 range for a while.
Key events Wednesday include a Greek parliamentary decision on a bailout and congressional testimony from Federal Reserve Chair Janet Yellen.
“Technically, gold still looks vulnerable to further losses, trading within a short-term bearish trend channel, which has been marked by consistently lower lows and lower highs over the past month or so,” MKS says.
“With that in mind though, we remain cautious of being short due to the over-extended short positioning, which according to CFTC (Commodity Futures Trading Commission) figures released last week is sitting at all-time highs. For the interim we feel that $1,143-1,165 should hold, short of any Greek curveballs.
In contrast to the increasing short positioning in Comex gold, ETF (exchange-traded-fund) flows have been slightly positive over the last few weeks. The SPDR Gold Trust has seen holdings increase 7.17 (metric) tons since June 19, with total holdings now sitting at 709.07 tons, according to the SPDR website.” |
