PRECIOUS – Gold jumps more than 2 pct; still down for the week

Gold market update for Friday, April 19. Gold is back above $1400 an ounce this Friday as bargain hunters continue buying physical bullion. Since the metals’ boulder-like drop earlier in the week, gold has been caught in a “tug-of-war” between physical buyers and wary investors cutting exposure on concerns that central banks will end bond-buying and other programs. Many see physical buying as supporting gold for now, especially Mark Pervan, head of commodity strategy at ANZ. “This gives us some confidence that as panic selling passes, prices can rebound by $100 to $150 an ounce and trade in the $1400 to $1550 range over the next 3 to 6 months. A key factor to watch will be gold (exchange-traded fund) ETF holdings, with a stabilisation in ETF holdings and then fresh ETF buying to restore some of the lost confidence for longer term gold investors,” he explains. Read more…