Gold looking “sloppy” short term, but pullback “attractive” | Resource Investor.
The gold price slipped back to last night’s near-two week lows at $1665 per ounce Friday lunchtime in London, heading for a 1.1% drop on the week as world stock markets and other “risk assets” rose.
Silver also ticked lower to trade 2.7% beneath Wednesday’s 5-week highs.
Germany’s Ifo index of business sentiment meantime hit its best level since June.
The European Central Bank surprised analysts by saying 278 banks in the single-currency zone will repay €137 billion ($184bn) of their 3-year LTRO loans next week, nearly two-thirds more than expected.
“It now seems that the stronger tone in global equity markets, coupled with a notable easing in European and US market tensions, is leading to short-term pressure on gold,” reckons INTL FCStone analyst Ed Meir. “We think it will continue for a little while longer, given that negative chart picture[s] are also contributing to the sloppier tone.”