The dovish tone to the FOMC minutes on Wednesday was enough to push gold prices back to the March lows, but prices still need to push higher to signal that a bottom has been made in the yellow metal, says Ole Hansen, head of Commodity strategy at Saxo Bank. Thursday morning, Comex December gold futures hit a high of $1,151.70 an ounce. “If gold can make it back above $1,157 you can start to argue that we have seen the bottom in the market,” he said in a video market update on tradingfloor.com. “But for that to happen we need to see further U.S. dollar weakness and continued weakness in equities.” Finally, Hansen added that it will be important to see on Friday, how much of this rally is related to short covering and how much is from new investors.
