Commerzbank: Gold Sideways Amid Offsetting Bullish, Bearish News
Friday September 27, 2013 8:38 AM
Gold prices have been largely sideways this week. “Clearly, bullish and bearish news are pretty much balanced at present,” says Commerzbank. “The fact that the U.S. is coming ever closer to reaching its debt ceiling and the resulting risk of insolvency is apparently being offset by expectations that the Fed will soon scale back its bond purchases in the wake of respectable economic data.” The bank does cite potential for increased gold imports by India. “The Indian customs authority has cleared considerable quantities of gold that had been in storage for quite some time at Indian airports because of uncertainty over the new import regulations,” Commerzbank says. “The festival and wedding season is fast approaching in India – a time when people traditionally give presents of gold.” As of 8:35 a.m. EDT, Comex December gold was up $15.80 to $1,339.90 an ounce, near the upper end of its range for the week of $1,305.50 to $1,345.20.