Gold Bullion (GOLD)

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Market Nuggets: Deutsche Bank Looks For Eventual Gold Rally But Says Too Soon To Call Bottom

Friday June 08, 2012 12:44 PM

Deutsche Bank says it’s too soon to call a bottom in gold. The metal first surged sharply, then fell back, as market expectations for another round of U.S. quantitative easing first rose and then abated over the past week. “While we expect gold prices will eventually rally, we believe it is too soon to call a floor in the gold price given the ongoing downside risks to the euro in response to banking problems in Spain and the Greek elections on June 17th,” the bank says. Meanwhile, the industrial-metals complex is likely to remain under pressure in the near term due to concerns about slowing global economic growth, Deutsche Bank says. Chinese economic activity is especially concerning and we are worried that near-term indicators may show very sluggish conditions on the ground.”

By Allen Sykora of Kitco News; [e-mail]


http://www.kitco.com/reports/kitcoNewsMarketNuggets20120608.html