Gold price could pull back to $1,300 an ounce
New York (July 22) HSBC cautions that gold could pull back to around $1,300 an ounce, but the retreat would be limited. The August futures did fall back as far as $1,310.70 an ounce in overnight screen trading.
“Thin summer trading conditions may be as important a reason for gold edging lower than renewed expectations for a (U.S.) rate rise this year,” HSBC added.
“In quiet conditions, the gold market may gravitate to the vicinity of large round numbers, with $1,300/oz the closest and most obvious. That said, there may be limits to further gold declines. The U.S. presidential election is moving into full swing. Geopolitical risks remain, Brexit notwithstanding. This should help cushion declines,” analysts at HSBC added.