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By Christine Gaylican, Opalesque Asia:
Gold futures trend
Gold futures has settled at $995.75 per ounce at 0408 GMT today, up 0.5%, on the COMEX division of the New York Mercantile Exchange, which the Opalesque research team considers as directly proportional to the gains in equity markets.
According to the latest Opalesque's Technical Research Briefing (Source) "if stocks retreat into the end of the week, profit-taking in gold would follow," as lower stock markets also diminish the allure of gold as inflation hedge.
Regarded as the safe haven for investments when the U.S. dollar depreciate and inflation rises, the precious metal is poised to hit its best quarterly performance since the first quarter of 2008, analysts interviewed by Opalesque said.
Koichiro Kamei, managing director at Market Strategy Institute in Tokyo, said in a phone interview, that the market focus in October will shift to banks' quarterly earnings.
"There are indications that the Federal Reserve is unlikely to give up its current monetary policy any time soon as quarterly earnings may not truly boost investor confidence. This could result to a weaker dollar, inflation woes, and therefore, preference for gold," Kamei told Opalesque.
"The gold market sentiment is not as bad as buying is expected to be within the range of $990 to $985," John Reade, head o...................... To view our full article Click here
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