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Meir: If EU Concerns Resurface, Gold Will Perk Up

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    Edward Meir of Intl FCStone gives his outlook for gold.

  • Duration 3:46
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All right after brutal sell off yesterday -- moving higher today so can we expect more wild swings ahead joining us now from Stamford Connecticut is Edward Meir senior commodity consultant.

At IN TL FC stone it.

While with credit -- guys have there.

Let me let me ask about the big sell off yesterday in commodities I mean we saw gold get hit by more than fifty bucks I think there were some people that wondered if it was an opportunity when I asked traders they said oh no it's going down at 15100 what's your take.

I think gold is gonna be a bit sloppy for the next few days.

However.

If the situation in Europe starts to.

We seem to be having some signs of that happening with with the Spanish debt auction rate I think gold will start to perk up and -- you could see.

You could see a doing a bit better from here so net net out probably looked to be buying here as opposed to looking.

Four rallies to to go short so yeah I think if anything it's it's probably a bit overdone.

On the downside keep them on we also had a big drop on February 20 ninth and we kind of stabilize shortly after that so this kind of is very similar -- -- -- -- last month -- into February's.

Yes and they're competing forces out there of course and gold you have the -- out there really talking it down saying that they're gonna take the punch bowl away and that had to -- impact.

But that Spanish final yield was really sloppy.

-- -- see you're saying you think there's more of of that to come more yeah despair side less focus on the fat.

Yes I think he did the Europeans.

Their kind of in store for act two.

So they've they've got to get their act together in terms of you know tried to avert another.

Greek situation they have to really be proactive aggressive.

Because as you know these things kind of take a lot of fond of their own and once yields started moving higher they keep moving higher and and we really don't we really can't afford to.

Another replay of Greece at this point.

-- that's kind of why you think copper goes lower because you think that it you know every day it's.

This situation in Europe continues to deteriorate that it would impact growth around the world and as a result we would see less buying copper or is there another -- That's interesting point you raised you know yesterday everything fell apart.

Together you know every every right headed for the exits at the same time.

Going forward I think copper may start coming down a bit more -- while gold starts to trend higher because copper is very much of China today.

And with the Chinese consuming about 40% of the world's copper I think as -- so down.

We'll start to see a bit more pressure on copper -- as gold is sort of more of crisis today and as the crisis.

Thermometer inches up you'll start to see gold prices moving higher as well.

Speculators take a lot of heating oil markets they were talking -- earlier in the show that they're different consumer groups that are trying to organize protests against speculators what do you think about that.

With respect to metals.

How well it.

We we really don't have this name degree of us.

Who -- passions and we don't really try to do that as copper is you know an industrial metal that's used Mario purposes but at the same time you have speculators and they're taking the other sad about -- applies -- per share.

Sure it's very it's probably I should say this is probably not as vocal group as as energy.

Lobby is it against higher oil prices because you you kind of see it every day when you fill up your gas -- so.

Copper is -- -- lost in the housing.

Infrastructure somewhere so it's not as noticeable but there's speculation in every market that's just the way out of the markets are set up yeah.

It's -- really get insight thank you so much for coming -- -- a diplomat.

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