Bargain hunters see a gold bottom after October's panic selling
Gold rebounded toward $3,900/oz after a low of $3,891.67, as Commerzbank called the panic selling overdone and forecast a medium-term recovery.
Gold rebounded toward the $3,900 per ounce level after the low it recorded last week at $3,891.67, according to a report published by SMM citing Gold Invest.
Gold fell about 6% in October, leaving it roughly 28% below its record closing high of $5,419.83 per ounce on January 28.
Commerzbank described the panic selling as overdone and forecast a medium-term recovery, while Ole Hansen of Saxo warned that silver could fall to the mid-$40s.
Bargain hunters see the low near $3,890 as a possible turning point, but they are waiting for confirmation through a break of higher levels before building large positions.
What do these terms mean?
Panic selling: A rapid selling wave driven more by fear than fundamentals, often leading to a sharp drop followed by a rebound.
Record close: The highest closing price an asset has recorded in its history, used as a reference for measuring the size of a correction.
Medium term: A period usually spanning weeks to months, used by analysts to distinguish it from daily moves.
Support level: A price at which buyers tend to defend, temporarily limiting further declines.
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