In a mildly bullish assessment of gold’s prospects Jeff Nichols comments that a lasting further downturn is now far less likely than a sharp move higher.
by Lawrence Williams, MineWeb.com
In an email to Mineweb on Friday, U.S. gold commentator Jeff Nichols reckoned that for the current week the odds favoured a further rise toward the top of the recent trading range — and possibly even a break through to higher territory. Early trading today seems to be supporting that view. The precious metals certainly seemed to be showing a bit more mettle as last week progressed, with silver doing better than its yellow sibling, at least in percentage terms- a trend which continued this morning with it breaking through $21 for the first time in nearly eight weeks, while gold moved back up through $1,330.
However Nichols also notes that the past week’s gold-price action has been a stern reminder of gold’s continuing vulnerability — and its potential strength. On a positive note, physical market fundamentals remain supportive while overly negative sentiment indicators suggest the market is oversold.