"We would look to start buying" because the selloff "is starting to get stretched"
After a prolonged sell-off in gold
, prices have started climbing again this week. For Barclays Research, this has been a time for introspection on its outlook for the yellow metal. They have now concluded that the sell-off rally was overstretched and perhaps it is time to start buying gold
again changing their view from desperation on fall in prices to recent cautiously bullish to bullish view -- thereby completing a circle.
The investment bank is bullish on the macro environment as well as investor inflows. On the fundamental front, the bank is neutral and from the point of view of technicals, they have a bullish strategy.
"The sell-off in gold
is starting to get stretched. Given the context of the larger bull trend and the currently oversold and overly bearish momentum and sentiment, we would look to start buying. Short-term support can be found around the nearby lows at 1672. Against that level, we remain medium-term bulls, with today's bullish outside day helping support the bullish argument in the short term." the bank said.Read Article