Gold prices are trading under the level where they were prior to the Federal Reserve's third quantitative easing announcement, pressured by speculators in the futures market selling positions, says Nomura, since holdings in gold exchange-traded funds have been relatively stable.
The reduction in short-term speculative positions "should help gold find a floor," the firm says. Nomura adds while there is some reason to be cautious because of the recent price break, they see value in buying dips in "particular if we see a further reduction in short-term spec positioning and if major downside technical levels hold (such as $1,690 an ounce). If positioning clears, then risks of a further unwind diminish.". . .View Full Article