GOLD PRICES slipped Monday morning, dropping $12 per ounce below last week's 2.5-month high as China's stock market rallied at its fastest since 2015 on a raft of 'support' promised by Beijing, writes Atsuko Whitehouse at BullionVault.
Europe and other Asian equity markets rose less steeply, while gold prices traded down to $1221.50 per ounce.
International tensions meantime worsened over Saudi Arabia's apparent murder of a US-based journalist, plus the UK Government's attempt to conclude a Brexit deal with the European Union, as well as Italy's planned 2019 budget deficit.
"Supportive price action around $1210-1220 should restrict declines amid current global political uncertainty," reckons the gold trading desk at Swiss refiners and finance group MKS Pamp.
"A test through $1230-1235 will likely squeeze further shorts out of the market and see gold toward $1250."
Starting from their heaviest net-negative betting against gold prices on record, hedge funds and other 'Managed Money' traders last week more than halved their bearish position on Comex gold futures and options, according to US regulator the CFTC.
Source: BullionVault via USGS, GFMS,WGC, Metallis
Source: BullionVault estimates via various sources
GOLD PRICES slipped Monday morning, dropping $12 per ounce below last week's 2.5-month high as China's stock market rallied at its fastest since 2015 on a raft of 'support' promised by Beijing, writes Atsuko Whitehouse at BullionVault.
International tensions meantime worsened over Saudi Arabia's apparent murder of a US-based journalist, plus the UK Government's attempt to conclude a Brexit deal with the European Union, as well as Italy's planned 2019 budget deficit.
"Supportive price action around $1210-1220 should restrict declines amid current global political uncertainty," reckons the gold trading desk at Swiss refiners and finance group MKS Pamp.
"A test through $1230-1235 will likely squeeze further shorts out of the market and see gold toward $1250."
Starting from their heaviest net-negative betting against gold prices on record, hedge funds and other 'Managed Money' traders last week more than halved their bearish position on Comex gold futures and options, according to US regulator the CFTC.
