Market Nuggets: PFGBEST’s Daly: Market On Lookout To See If Bargain Hunting Emerges In Gold

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(Kitco News) - Mike Daly, gold and silver specialist with PFGBEST, says traders will be on the lookout to see whether recent weakness in gold will bring about bargain hunting. Prices fell Wednesday as the market continued to react to a Federal Open Market Committee statement the day before construed to mean little chance of further U.S. quantitative easing. Previously, gold was underpinned by physical buying from Asia, geo-political tensions involving Iran and the West and leading to higher crude prices, plus hints in the early part of the year of more Fed easing. Removal of the latter has taken some of the glitter out of gold, Daly says. “However, keeping interest rates at benchmark lows through 2014 is bullish gold,” says Daly of the Fed’s stated intentions so far. “We will see if this recent three-trading session price break will bring bargain-buying opportunities.”