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Forex Flash: Gold likely to trade with an upward bias short term - Nomura

FXstreet.com (Barcelona) - Gold remains subject to two opposing forces, according to Saeed Amen and Geoffrey Kendrick, FX strategist at Nomura: "The liquidation of gold ETF holdings on the downside and support from physical demand, particularly from Asia, supporting the price" the Nomura strategists said.

Saeed and Geoffrey add: "While we think gold is likely to rise, it needs a turn from gold ETF holdings, for this to be a significant move. So far we have yet to see any sort of turn in gold ETF holdings. We think gold is still likely to trade with an upward bias in the short term, but we think that gold ETF holdings need to turn higher for the move to accelerate."

Commodities Brief: Precious metals decline as US Dollar finds buyers

The precious metals were unable to follow through with any gains today, as strength in the US Dollar appeared to be a catalyst for some of the losses. Gold finished down 1.08% to close at 1457, while silver closed down 0.83% at 23.70. On a final note, oil was once again capped just below the 97 level and finished the day down 0.50% at 96.20.
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Forex Flash: ECB not to be the first CB to impose a negative deposit rate - BBH

According to Brown Brothers Harriman: “On May 8th, banks further trimmed their overnight deposits at the ECB and at 120 bln euros is the least amount since November 2011,” notes Marc Chandler, Global Head of Currency Strategy at BBH, while “Banks increased their current account holdings to 46 bln euro to 347 bln, which is the most since mid-April,” the analyst adds. “We see rise of the current account holdings as a reflection of banks preparing for their reserve maintenance period,” he suggests.
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