Analysts at Triland Metals sound quite upbeat about gold, saying that it has enough momentum to push higher in
the near-term, though it might not be able to hold long-term gains.
Meanwhile, commodity strategists at Morgan Stanley consider the latest rally to be short-lived.
“With gold
clearing the $1225 resistance we should be up at $1244 in a fairly
orderly fashion. Gold would need to clear $1308 to enter new territory
however and we remain skeptical of the commodity bounce.”
“In
the last few years gold and silver have both traded marginally above
their 200 day MAs for a period of a few weeks before giving way to
supply. We won’t bet against this happening again…” Triland Metals says.
Morgan Stanley's commodity analysts are bearish on the yellow metal and expect the latest rally
to be temporary.
“Lack of inflation, emerging financial stability in Europe, and robust economic activity in the US are all bearish for gold,” they indicated in their recent report. They repeat that continued capital flows into the U.S. dollar will push gold prices lower at the end of the day. Analysts stick to the opinion that gold prices will trend lower over the next two years.