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Hansen: Why I'm bucking the short term gold view
A Bloomberg survey indicates that while 15 gold analysts expect the metal to rise
this week, only two are bearish. One of them is Saxo Bank's Ole Hansen.
He is bucking
the trend because although we may have seen a rise in gold largely due to short positions held by hedge funds and strong physical
demand out of China, the investment
demand hasn't kicked in just yet. He also adds that fundamentals are not very supportive for
gold.
Ole is looking out for three levels in particular, but reminds investors that he is talking short term. On the upside, he wants to see a break above the USD 1,268 level as that could trigger some additional short covering. On the downside, he says USD 1,220 will offer the first level of support and USD 1,206 needs to hold for the positive start to continue.
Looking ahead, Ole says gold remains range bound and that he's cautiously optimistic for the rest of the year.
01:57 minutes
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