Price Neutral On Gold & Silver In Near Term – HSBC
London (May 29) Although gold prices found support from a small rally in the EUR-USD on Thursday, analysts at HSBC said upside potential for gold is limited. “HSBC’s G-10 strategist Robert Lynch states that barring an unexpected — and confirmed — breakthrough on the Greece program talks and debt negotiations in the very near-term, he expects EUR-USD upside to be limited from current levels, particularly as the USD itself is continuing to perform well,” they said in a research note. “This would likely limit the upside for gold.” They added that they remain price neutral on both gold and silver. Finally, they noted that although demand from Asia hasn’t picked up with lower gold prices, analysts do not see sufficient selling pressure to break the prices lower and expect the $1,180/oz support level to hold.