Gold bottom update
By GCRU Gold News on Friday, September 26 2014, 11:53 - Permalink
What I didn't see on the 18th was any positive narrative around gold, but that has changed. First up we have this Reuters article which runs with the mine cost/closure narrative:
"$1,200 is a critical level. The industry has geared itself around $1,200," said Joseph Foster, portfolio manager at institutional investor Van Eck Global. "If it falls below that level, then there are a lot of mines around the world that are really going to struggle."
This is an important narrative for gold, and I've mentioned it before here. Then we had these two headlines: Bloomberg: Gold Premiums in India Seen Doubling on Festival Demand Gulf News: Weak gold prices has Dubai consumers clamouring for more
On the negative side re narrative Goldman are still downbeat on gold and stocking to their $1050 call and the strong dollar story is the biggest risk to gold breaking $1180.