Short-covering and finance fears could boost gold

GOLD could find support as finance fears resurface and short-covering ensues, according to Thomson Reuters GFMS.

Short-covering and finance fears could boost gold Short-covering and finance fears could boost gold Short-covering and finance fears could boost gold Short-covering and finance fears could boost gold Short-covering and finance fears could boost gold

The Chinese investment bar market has been retreating since its rally in 2013

GFMS head of metals Rhona O'Connell said in a report the bear market seen so far in 2018 had been driven by the continued dollar strength due to trade wars and the crises in Turkey and Venezuela impacting emerging markets' currencies.

"Whether any of the central banks of those struggling nations have been sellers of gold - broadly unlikely in our view, but not out of the question - has had less effect on the market's sentiment than the belief, well-founded or otherwise that they might be sellers," she said.

However, she said the net short on COMEX was at a record 244 tonnes at the end of August, with outright shorts at 593t, and although some short-covering had ensued, GFMS expected more, with a "sharp short-covering rally" not being ruled out.

The spot gold p...