{"id":59546,"date":"2012-02-23T11:14:57","date_gmt":"2012-02-23T00:14:57","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/02\/23\/precious-metals-ready-set-go\/"},"modified":"2012-02-23T11:14:57","modified_gmt":"2012-02-23T00:14:57","slug":"precious-metals-ready-set-go","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/02\/23\/precious-metals-ready-set-go\/","title":{"rendered":"Precious Metals: Ready, Set, Go?"},"content":{"rendered":"
\n\tBy Jonathan Barratt<\/span><\/div>\n
\n\t <\/div>\n
\n\t“Dips have to remain attractive” however we did not get the size of the dip we anticipated as we only reached US1684<\/span> and since the market has posted its largest single day rally in two weeks. It appears the main drivers for the move have been a lack of confidence in the Greek deal, China increasing the bank reserve ratio, the Fed suggesting that rates will remain on hold for the foreseeable future and oil breaking out to the topside.<\/div>\n
\n

\n\t\tThe potential for inflationary pressures coming to bear are perhaps a little more heightened today than they where a week ago. However, digging a little deeper, last week we mentioned the delicate balance between supply and demand forecasting the potential for a deficit. As investors get a little more comfortable with gold’s real return over equities, more players will enter the market. Bingo, supply demand comes into play.<\/p>\n

\n\t\tInvestors so far this month have ploughed<\/span> more money into exchange trade gold products than for the whole of January. In total, inflows of purchases are set to rise more than 600,000 ounces in February adding weight to the numbers for January and thus added pressure to the supply side. To reiterate, from last week “third quarter 2011 demand for the precious metal was 6% higher to 1053 tonnes<\/span>, yet supply was 1034 tonnes<\/span>. Although both demand and supply increased it serves as a reminder that the market is delicately balanced and as such the dips have to remain attractive”.  The demand for gold via the exchanges over the last two months has added a further 34 tons to the buy side.<\/p>\n

\n\t\tChart point:<\/u><\/strong><\/p>\n

\n\t\tThe correction was short lived and the bounce looks pretty solid. At the moment we are testing resistance at US1760 and a break sets the tone for a good move higher. Although, we missed the dip keep an eye on this resistance level as if it goes we could expect a decent rally, which sees US1800 reached pretty quickly.  On Silver if we get a break above US34.75 then we will look to trade the break.<\/p>\n<\/div>\n

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\n\tProduced by Jonathan Barratt direct from the trading desks of Commodity Broking Services, Barratt's Bulletin provides expert analysis of commodity markets, global indices and foreign exchange movements. Click here <\/a>to take a no obligation 21-day trial to Barratt's or to learn more visit www.barrattsbulletin.com<\/a>. Content included in this article is not by association necessarily the view of FNArena (see our disclaimer).<\/em><\/div>\n

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\n\tThis report is not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, products, securities or investments. This report does not, and should not be construed as acting to, sponsor, advocate, endorse or promote products or any other products, securities or investments. This report does not purport to make any recommendations or provide any investment or other advice with respect to the purchase, sale or other disposition of products, securities or investments, including, without limitation, any advice to the effect that any related transaction is appropriate for any investment objective or financial situation of a prospective investor. A decision to invest in securities or investments should not be made in reliance on any of the statements in this report. Before making any investment decision, prospective investors should seek advice from their financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.<\/i><\/p>\n

\t <\/p>\n","protected":false},"excerpt":{"rendered":"

Jonathan Barratt of Barratt’s Bulletin looks to gold’s demand-supply balance in support of a bullish view.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[22],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59546"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=59546"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59546\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=59546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=59546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=59546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}