Gold gains for third session, reclaims $1,400

Gold/copper market update for Monday, April 22. In the first day of trading for the week, gold continued off its two-year lows set last Tuesday, Apr 16. Strong physical demand coupled with a reduced number of “short” positions (bets a price will go lower) suggests a rally. Any rally though will be mild according to some analysts, with one saying the metal will see heavy resistance at the $1480 level. While physical buying can support the market for awhile, other factors like central bank selling and near-term monetary policy could put pressure on the gold price.


In other news, Goldman Sachs cut its 3-, 6- and 12-month forecasts for copper following a big sell off, concerns that demand may be waning in China and some other bearish indicators. Forecasts were lowered to $7500 per metric ton ($3.40/pound).

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