RBC's Gero: gold under pressure but 'look for bargain hunting'
(Kitco News) - Gold has been hurt by margin-related selling as stocks tumble, but look for gold buying to emerge at lower prices sometime this week, said George Gero, managing director with RBC Wealth Management. Gold fell with equities back in March, with analysts saying at the time that traders were having to sell whatever positions they could to generate cash. “Almost all commodities are off today,” Gero said. “You’re seeing sharp pullbacks in commodity accounts, and that accounts for margin selling in the gold. So selling begets selling.” As of 8:35 a.m. EDT, Comex August gold was $24.50 lower to $1,712.80 an ounce on a day when the futures for the Dow Jones Industrial Average were around 600 points lower amid worries about the economy as COVID-19 cases rise again. “Look for bargain hunting to resume...if bigger dips occur” in gold prices, said Gero, adding that he still looks for $1,800-an-ounce gold.