Gold Price & Silver Price Turn Bullish For As Metals See Strong Buying
San Francisco (Apr 6) As gold speculative buying remains strong and silver buying reaches its strongest level in six months, Bank of America Merrill Lynch (BoAML) analysts say they expect buying to continue. “Large specs bought gold contracts increasing net long positioning. Specs also bought silver contracts at the strongest pace in more than six months to increase net long positioning,” they say in a research note. “The repeated impulsive advances from the 1143 (Mar-17 low) says the gold trend has turned bullish,” they add. They say upside targets for the metal stand at $1,307/oz and $1,345/oz, and “potentially beyond.” The analysts add that pullbacks for gold shouldn’t break below the March 31 low of $1,178.57/oz.
For silver, they also say the trend has turned bullish. “Pullbacks should not exceed the March-31 low at 16.45 and can’t break the Mar-17 low at 15.39. Next major resistance comes in near 17.68-17.80 (200dma and chart pivot) through which opens a move towards 19.00,” they add.