Gold Silver Reports → Gold snapped a three-day losing streak on Wednesday, in choppy trade that saw the metal swing between gains and losses around the key $1,200 an ounce level as stock markets consolidated recent gains.
* Goldman Sachs Investors Should Short Gold
*The stock market stabilisation, after last week’s rout on concerns about the global economy, has reduced investor interest in gold as a safe-haven asset. The yellow metal hit a one-year high of $1,260.60 an ounce last week.
*Spot gold rose 0.5 percent to $1,205.56 an ounce by 0339 GMT, after earlier dropping to a session low of $1,195.40. It lost 3.7 percent in the previous three sessions.
*Concerns remain that gold could correct further as some analysts say gold gained too much, too quickly.
*”Gold’s price performance thus far this year… could prove to be unsustainable,” Societe Generale analyst Robin Bhar said in a note on Tuesday.
*Fears over the global economy are likely to fade and U.S. interest rate hikes will return to the agenda, hurting bullion, Bhar said.
*Earlier this week, Goldman Sachs also said investors should short gold, as it believes the recent rally has been overdone. → Neal Bhai Reports