Gold’s outlook may hinge on both the equity markets and US dollar over the course of the week, said Edward Meir, commodities consultant with INTL FCStone.
INTL FCStone suspects that both will continue to drop over the short-term, offering a measure of support to prices.
In addition, gold ’s technical picture looks slightly more constructive, with the short-term downtrend line now being broken and the relative strength index — a measure of overbought/oversold conditions — also at a neutral reading, suggesting that we still could push a little higher from here, Meir added.
However, that other precious metals other precious metals may not automatically follow gold closely, as they appear to have been weakening due to sloppier global macro numbers we have been getting lately in terms of indus¬trial production.
In addition, car sales in both the US and China seem to have decelerated from their summer highs, while European demand, while rising on a year-over-year basis, remains too weak to move the platinum needle on its own.
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