Monthly Precious Metals Report
(Jun 2016)Source: ScotiaMocatta
Profit-taking was expected to unfold and prices have corrected in May
accordingly. Bases now seem to be in place and prices are rallying on the
back of the weaker dollar.
- A more hawkish stance by Fed officials gave the market the
catalyst it needed to correct. Gold prices found support around
$1,200/oz, having retraced 40 percent of the Dec-May gains.
- Fund longs have started to correct, but the net long fund position
is still large, so further profit-taking may follow