Gold will be shaped by a number of political meetings this week

The posture of the Goldmarket this week will be shaped by a number of political meetings, which are likely to focus on the European sovereign-debt crisis, said Commerzbank. 

“Friday’s EU (European Union) summit is the most important meeting over the next few days, though we can expect a long wait before a permanent solution to the crisis is found. The ECB’s (European Central Bank’s) meeting on Thursday is also an important focus this week,” bank added.

Economists with Commerzbank anticipates a rate cut of 25 basis points to 1%. This should lend support to the Goldprice since the opportunity costs of holding gold will remain low. 

The  bank noted, speculative financial investors are showing “reticence” and for the second straight week moderately cut their net-long position in the week to Nov. 29. – Kitco

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Posted by admin on Dec 6 2011. Filed under Gold predictions, Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry