Tuesday October 15, 2013 08:27
The markets continue to confirm the optimism of a deal being reached imminently. Gold traded to our target of last week, touching the $1,255 level. The market is now at a serious pivot point. A breach of the $1,255 level will bring in this year’s low of $1,180. Physical demand continues to be robust from China, but has dropped sharply in Europe and North America, and ETF outflows continue to add supply to a weak bid. We may get a ‘sell the rumor buy the news’ bounce on the metals, as a deal will refocus the market on the continued global easing policies of the central banks. This will come down to a fight for capital inflows between the equity and commodity markets, with the edge still in the corner of stocks.