The Street - Gold Prices Rebound on Technical Buying (Update 2)
By: Phillip StreibleJanuary 23rd, 2012 8:28AM CST
Gold prices jumped in mid morning trading on technical buying, holding on to gains after prices brushed up against the $1,650 an ounce level. Gold is primarily a "trading affair" today, says Phil Streible, senior commodities broker at RJO Futures. Streible says there is a lot of shorting gold -- that is betting against a higher gold price -- around the high $1,660 level and then a lot of "buying the dip" and short covering -- where traders buy back those positions -- around the $1,650 level. "This pop is technical based trading," he says, "I haven't seen anything dollar specific [to move prices]." A purely technical pop in gold does raise questions as to whether the rally is sustainable.
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Phillip Streible
Senior Commodities Broker
Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains, and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker.
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