Although overall sentiment seems to be bearish for gold, analysts at Triland Metals say there may still be more wiggle room. “We do not believe that we are at the point of maximum pain just yet,” they say Tuesday. “[W]e look to see further weakness in the sector as we approach the impending rate rise in the US,” they add. However, they note that at the point where the U.S. Federal Reserve decides to raise rates, “the bullish cash may be as strong as ever.” For now, they say there are no technical levels of interest and the market is likely to hit more downside targets, at which point the market will experience short squeezes. “[W]e would expect such rallies to be sold into,” they note.
