Disconnect Between Paper And Physical Gold Market
Tip TV | Dec 12, 2015 15:29
EUR/USD, as well as an outlook for Gold, Leni Gas & Oil Plc (L:LGO), Proxama PLC (L:PROXP) and CNEL.
h3 US retail sales due, EUR/USD eyes 1.10/h3Batsford highlighted FX Street, who noted that the US retail sales are expected to come in at 0.3%, with the previous number being 0.1%. They continued that a horribly weak number could force markets to consider the possibility of a smaller lift-off, in the region of 10bps. In terms of the EUR/USD, we may see a weekly close above 1.10 if the retail sales beat estimates, and this would open the door for 1.1087-1.1120 ahead of next week’s FOMC meeting.
h3 Outlook on Gold, LGO, PROX and CNEL/h3
Gibson outlined that gold has been relatively resilient, but there is a huge disconnect between the physical market and the paper market. Mir added that gold has held around $1070, and if the Fed doesn’t raise rates we would see some major upside, although this is unlikely.
In terms of LGO, Mir believed that the stock appears to be experiencing a falling wedge formation, and he commented that the trend is down with the sinking oil price, but don’t rule out a rally towards the 50-DMA.
PROX is also experiencing a falling wedge formation, expressed Mir, and the 50-DMA was the target for this stock, with 0.9p being the longer-term target.
He finished on CNEL, which he noted bounced of November resistance, and now retracement towards the best levels on the stock is possible.
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