Gold Rally Next Week Possible – RBC’s Gero
By Kitco News
Thursday July 23, 2015 10:14
Gold sees a small short-covering rally Wednesday, and although one market veteran says the metal is still off investors’ radars, he says it could find relief next week. “[W]ith jobless claims figures today, gold is still off the investment radar for now,” says George Gero, precious-metals strategist with RBC Capital Markets Global Futures. He notes that on July 28, Comex options expire, with about 1.5 million open interest with many puts that may be in the money. “That means next day they become futures contracts.” Gero says margin calls may ensue, and the options expiration may prove to be positive for gold. “With all the bears in the woods, a rally next week is more possible.”
Gold Rally Next Week Possible – RBC’s Gero
By Kitco News
Thursday July 23, 2015 10:14
Gold sees a small short-covering rally Wednesday, and although one market veteran says the metal is still off investors’ radars, he says it could find relief next week. “[W]ith jobless claims figures today, gold is still off the investment radar for now,” says George Gero, precious-metals strategist with RBC Capital Markets Global Futures. He notes that on July 28, Comex options expire, with about 1.5 million open interest with many puts that may be in the money. “That means next day they become futures contracts.” Gero says margin calls may ensue, and the options expiration may prove to be positive for gold. “With all the bears in the woods, a rally next week is more possible.”
By Sarah Benali of Kitco News; sbenali@kitco.com