GOLD NEAR UNCHANGED, MAY RISE ON BARGAIN BUYING
Gold is little changed on the New York Spot Market, but may gain as the lowest prices in nearly three months spur demand. “From a risk-reward perspective, this level presents a buying opportunity,” said Bayram Dincer, an analyst at LGT Capital Management in Pfaeffikon, Switzerland. Investors are also expecting there may be increased demand from India. “The current decline in the gold price is probably only short-lived,” Eugen Weinberg, the head of commodity research with Commerzbank AG, wrote in a report yesterday. “There are some religious holidays from the end of August” in India, the world’s largest gold consumer, which may propel demand, he said. (Bloomberg, 7/28/10)
Stocks are mixed on the New York Stock Exchange following news of worse-than-expected durable goods orders and weaker quarterly results from Boeing and others added to concerns about the pace of the economy. (CNN Money, 7/28/10)
Jeb Handwerger of Seeking Alpha tells traders gold is ‘oversold’ right now and prices are poised to go higher by the end of the year. According to Handwerger, “I expect that the rally in equities will be coming to an end and that gold’s poor summer performance will be different this fall as many weak hands are shaken out. An explosive fall rally into new highs is expected as I still have a target of $1400 by year end.” (Seeking Alpha, 7/28/10)
