{"id":59849,"date":"2012-04-26T10:26:35","date_gmt":"2012-04-26T00:26:35","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/04\/26\/world-gold-council-bullish\/"},"modified":"2012-04-26T10:26:35","modified_gmt":"2012-04-26T00:26:35","slug":"world-gold-council-bullish","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/04\/26\/world-gold-council-bullish\/","title":{"rendered":"World Gold Council Bullish"},"content":{"rendered":"
\n\tBy Jonathan Barratt<\/span><\/div>\n
\n\t <\/div>\n
\n\tThe World Council delivered its Quarterly Report on the gold market and although the price action has been relatively subdued of late the report supported our bullish stance.<\/div>\n
\n

\n\t\tThe report outlined three main themes. Firstly, through out the quarter gold’s return in other major currencies have been significant, averaging above 4% on most currencies, with the investors in yen are seeing a 16.1% gain. This is important as it indicates to us that demand remains solid in the domestic markets around the world and reinforces our feeling that as the ETF<\/span> markets become domesticated more people will look towards gold as an important part of an investment portfolio. This should see increased demand. <\/p>\n

\n\t\tThe move away from mining shares as a means to gain exposure to the sector will gain momentum.<\/p>\n

\n\t\tSecondly, the WGC<\/span> noted that the positive volatility skew was measured at 21.8% opposed to 16.4% for the bears which suggests investors have a greater propensity to invest on call options over puts. Finally, the report discounted the correlation between the bias that as equity valuations move higher Gold moves lower. It showed that a positive correlation exists between equity and gold prices.  If equity prices move higher gold is also expected to move higher.<\/p>\n

\n

\n\t\t\tWe continue to hold positions in both gold and silver, however as we trade around the lows we remain nervous. The good point is that the more time we spend at current levels the stronger the support gets.<\/p>\n<\/p><\/div>\n

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

\n\t\tThe range for Gold looks to be US1630 to US1665<\/span> and we continue to see range-trading opportunities. Continue to focus on US1665 as potential break out to the topside. In silver support comes in US 30.75 and resistance at US 32.70. Daily momentum indicators for both gold and silver remain mixed however on the lows.<\/p>\n

\t \"\"<\/div>\n

\n\t <\/div>\n
\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

\n\t\"\"<\/p>\n

\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 notes that despite recent sluggishness, indicators remain bullish for gold.<\/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\/59849"}],"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=59849"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59849\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=59849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=59849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=59849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}