Weak economic data means low interest rates are likely for a longer period of time, Gero said.
FORBES: Gold Underpinned By Downgrade Worries, Economy, European Debt Issues, Central-Bank Buying
Now, the market also is being hit by margin-related selling, said Gero and Ironbeam precious-metals analyst Sean Lusk.
FORBES: FOCUS: Gold's Tumble Continues; Bargain Hunting Seen Once Prices Stabilize
Gero noted gold prices did not fall on Friday following options expiration, which has been the case normally.
FORBES: METALS OUTLOOK: Gold Prices To Stabilize Next Week After Recent Break
Gero said he looks for investors to start coming back to gold when they are finished raising cash.
Further, Gero said, European debt issues persist, as well as some of the geopolitical tensions in the Middle East.
FORBES: Gold Remains Above $1,600; Temporary Correction Seen If U.S. Reaches Debt-Ceiling Deal
Gero cited extra interest in gold since the yields in another traditional safe haven, U.S. Treasury securities, are low.
FORBES: Gold Strong In Euro Terms But Faces Offsetting Factors Against Dollar
Gero is keen to see what the open interest levels will be in the Comex gold futures once the session ends.
FORBES: METALS OUTLOOK: Gold Weakness Could Continue Next Week
Gero said gold will be supported as the International Monetary Fund is now concerned that the euro zone debt crisis will expand.
FORBES: METALS OUTLOOK: Gold Seen Steady To Higher Next Week After Recent Weakness
An agreement would be expected to underpin the euro, thereby helping gold, said Gero and Daniel Pavilonis, senior commodities broker with RJO Futures.
FORBES: Gold Market Expected To Focus On Greece, Fiscal Cliff, Fed Speakers Next Week
Commodity markets are violent, as Gero said, and investors would do well to reassess their views of gold before deciding to jump in again.
FORBES: Violent And Panicky Gold Selling Collapse Bullion And Commodity Markets
George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, pointed to optimism for improving demand for PGMs from the automotive sector.
FORBES: Palladium Hits Highest Level Since February; Platinum Also Rises
Gero said that the euro has been fairly steady and most analysts are expecting the ECB to cut rates, either at this meet or next month.
Gero said with crude oil prices falling there is less concern about inflation which gives the Fed some room not to raise rates for a while.
FORBES: METALS OUTLOOK: Greece, Dollar To Influence Gold Next Week
This may also have exerted some pressure on gold, said Lesh and George Gero, vice president and precious metals strategist with RBC Capital Markets Global Futures.
FORBES: Comex Gold Eases On Liquidation After Stalling Ahead Of $1,700, Stronger Dollar Index
Markets also will be eyeing news reports on the strength of post-Thanksgiving Black Friday holiday sales for signs of how the economy is holding up, Gero said.
FORBES: Gold Market Expected To Focus On Greece, Fiscal Cliff, Fed Speakers Next Week
George Gero, vice president with RBC Capital Markets Global Futures, vice president-precious metals strategist, said he expected gold to trade steady to higher next week as gold.
FORBES: METALS OUTLOOK: Gold Seen Steady To Higher Next Week After Recent Weakness
George Gero, precious-metals strategist with RBC Capital Markets Global Futures, pointed out that the number of open positions in Comex gold for contracts beyond 2012 is building.
FORBES: Focus: Safe-Haven Buying Boosts Gold; Diverges From Equities and Rises With Dollar
Gero and Lusk also cited the strength in the stock market so far this year as a factor hurting gold, even though equities are off of their highs.
FORBES: FOCUS: Gold's Tumble Continues; Bargain Hunting Seen Once Prices Stabilize
Both Oxman and Gero noted that when gold prices do slip to the lower end of their trading range, buying has come into the market to limit further losses.
FORBES: METALS OUTLOOK: Greece, Dollar To Influence Gold Next Week
George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, looks for traders to continue factoring in potential for more stimulus in the U.S., Europe and China.
George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, described a situation in which traders who established old long positions at lower prices have sufficient equity.
FORBES: Comex Gold Steady After Backing Down From Fresh Highs Overnight
After sinking this week, gold prices rallied on Friday, which George Gero, vice president of RBC Capital Markets Global Futures and precious metals strategist, attributed to short covering, rather than new buying.
FORBES: METALS OUTLOOK: Gold Weakness Could Continue Next Week
Conversely, Gero said, declining open interest at a time of declining prices is a clue that much of the selling is in the form of liquidation by longs who no longer want to own gold.
FORBES: Rising Gold Prices, Open Interest Reflects New Buying In July
George Gero, vice president with RBC Capital Markets Global Futures and precious metals strategist, said there are too many events and possible events happening next week to even attempt to call short-term direction in gold.
Gero said redemptions in ETFs like SPDR Gold Trust (NYSE: GLD) has created a lot of supply in the market place, which, with the lack of demand, will take a while to work its way through.
George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures, said he expects some buying to cover short positions from traders who do not want to hang onto bearish gold bets over the weekend.
FORBES: Gold Recovers As Soft U.S. Data Dings Dollar; Market Eyes Physical Demand
While some see that as supportive for gold, Gero said it seems that crude oil is getting a bigger lift out of that news than is gold on fears of a shutting off of crude oil supply.
FORBES: METALS OUTLOOK: Impact Of Fed Action To Reverberate Into Next Week
Additionally, gold is being held back by some market worries that countries such as Greece and Portugal may have to put up some of their gold reserves as security in order to gain additional loans, Gero said.
FORBES: Gold Strong In Euro Terms But Faces Offsetting Factors Against Dollar
George Gero, vice president with RBC Capital Markets Global Futures and a precious metals strategist, said the dragging on of the fiscal cliff debates in Washington over automatic spending cuts and tax increases is taking a toll.
FORBES: Metals Outlook: Getting Ready For Last Full Week Of Trading For 2012
Had the FOMC statement been construed to mean accommodation could be scaled back sooner than previously thought, gold might have extended its earlier losses, said George Gero, vice president and precious-metals strategist with RBC Capital Markets Global Futures.
FORBES: FOCUS: Gold Bounces After FOMC Statement; Continued Accommodation Seen As Supportive
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