Wed 16 May 2012 14:15:00 CT
While June gold showed signs of becoming extensively oversold in the initial downside probe today and the market showed some bounce capacity it would not seem like the big picture negatives weighing on gold prices recently haven't been dramatically altered. Clearly gold and other physical commodity markets were temporarily cheered by better than expected US scheduled data but gold had to fight aggressively just to claw back and temporarily hold the recovery effort. Not surprisingly slightly improved economic news was largely discounted because of even more significant uncertainty being thrown off from the Euro zone. Toward the end of the session, the gold market came back under renewed pressure perhaps because some gold longs simply decided to exit ahead of the FOMC meeting minutes release. However, gold did seem to manage some minor recovery action in the wake of the FOMC meeting minutes release as some analysts suggested that confusion at the Fed because of weather influences might mean that some easing could be in the offing ahead.
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