"This is not a call for a huge rally in gold, just that we are probably finished with the huge move down for now," Miller Tabak wrote on Monday.
Investors should remain cautious, though, as the unfavorable market trends to the yellow metal remain a factor. Analysts from Barclays warn that gold would need more support to sustain its recent, short rally, and that it "is likely to be short lived."
"Gold has taken its lead from U.S. macroeconomic developments for a number of months, sidelining positive price catalysts such as the Bank of Japan's liquidity injection, and although prices have responded to concerns over growth, in our view, a deterioration in U.S. macro data would be required for prices to make a sustained move higher in light of record gross short positions," Barclays's Suki Cooper and Lynnden Branigan wrote in a Monday note.
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