Analyst: Funds unloading gold will keep a lid on rallies going forward
By Shawn Langlois, MarketWatch
LOS ANGELES (MarketWatch) — Gold eased back in electronic trading Tuesday, but mostly stuck to its recent range as traders, without much of a catalyst to push them one way or another, positioned themselves for the FOMC minutes, which will be released a day later.
At last check, gold for June delivery GCM4 -0.08% fell $2 to $1,291.80 an ounce. July silver SIN4 +0.22% was flat at $19.35 an ounce.
ANZ Research analyst Victor Thianpiriya says the fact that funds are continuing to unload gold will keep a lid on any rallies going forward.
“In this environment, it is difficult to see gold sustaining any significant gains and our bias is that the eventual break-out of the range will be to the downside,” he warned.
A day earlier, gold prices battled back from a two-day decline to push slightly higher, continuing to hover around these levels amid a mostly quiet stretch of trading.
Elsewhere in metals trading, platinum for July delivery PLN4 +0.37% added $2.30 to $1,472.50 an ounce, while June palladium PAM4 +0.66% gained $1.75 to $817.35 an ounce. High-grade copper for July delivery HGN4 -0.32% HGN4 -0.32% didn’t budge at $3.17 a pound.
Another quiet day on the economic front is on tap, but the calendar gets more crowded on Wednesday when the FOMC minutes jump into the spotlight. After that, data on new and existing home sales will draw their attention as the week winds down.
