Gold market needs to close above $1,885 before it is out of the danger zone

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Kitco News' general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices

- The gold market has significantly bounced from last week's seven-month low. But although bullish potential continues to grow, the precious metal is not entirely out of danger, according to one bank.

While gold prices pushed to a two-week high and to within striking distance of $1,900 an ounce, it has not been able to maintain those gains. Stubbornly higher U.S. CPI data capped gold's rally Wednesday. December gold futures are currently trading at $1,881.80 an ounce, down 0.30% on the day. Hansen noted that gold-backed exchange-traded products have seen outflows of 224 tonnes in the last four months. He added ETF gold holdings are at their lowest level in 3.5 years.

Hansen said the biggest support for gold comes from the U.S. bond market, which is seeing its worst bear market on record, driving yields at the longer end of the curve to 16-year highs."In our recently published outlook for the fourth quarter, titled 'Bond. Long bond,' our core thesis is that real rates are too positive, creating a fallout from sectors and consumers with refinancing needs," he said.

 

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Pinpointing the major bottom in gold stocksKitco News' contributed commentary features articles and opinions from some of the top experts in the gold industry.
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