Gold might be under pressure with the broad commodity complex lately, but buying just ahead of $1,200 an ounce suggests a “deep-rooted interest” in the yellow metal, says Triland Metals. Commodity markets have been pressured lately, much of it due to a stronger U.S. dollar, the firm points out. “With the mood damp and sentiment weak, shorts are continually frustrated with buying that is supporting (gold) just ahead of the $1,200 number,” Triland says. “Even if this is the last few gasps of a bid before a move of despair below $1,180, the action over the last few weeks suggests a deep-rooted interest in gold over other commodities and there is a very simple reason why gold is tenaciously holding its ground – ever-expanding fiat currency balance sheets.”
