 Mitsui Metals gold analyst Andy Smith says the gold price is now likely to test major moving averages at spot of $284 an ounce (50 day) and $278 an ounce (200 day). If gold breaks through that support level, Smith says producers' public declarations to abstain from hedging – a factor which has supported the price in recent weeks – will be sorely tested.
Smith says Germany has been dipping its toe into the gold market this year by selling 12 tons of gold Deutschmark coins and by signaling its intention to offload another 11 tons of euro gold coins. |
