Price Group's Flynn: Gold Eases With Reduced Geopolitical Worries
Comex gold has given up some of its prior gains on profit-taking after an easing of geopolitical concerns, says Phil Flynn, senior market analyst with at Price Futures Group. “It seems to be a reduction of geopolitical risk – some of the concerns we saw over North Korea and Russian jet issues,” Flynn says. Going into the weekend, traders had bought gold in case some of the worst-case fears materialized, he continues. “Some of the worst-case scenarios did not play out like we thought they could, so gold pulled back. Still, gold had an incredible rally in the last month, so the bulls have something to hang their hats on.” A stronger tone in the U.S. dollar has also hurt gold, Flynn says, but adding that the moves have not been tick for tick, with the normal inverse correlation not as strong as usual. As of 8:53 a.m. EDT, Comex June gold was down $7.80 to $1,286.40 an ounce.
By Allen Sykora of Kitco News; email@example.com
Commerzbank: U.K. Political Risk ‘Should Contribute To Solid Demand For Gold’
Wednesday April 19, 2017 09:10
Commerzbank says the U.K.’s political situation should be supportive for gold even though the metal did not necessarily benefit Tuesday after Prime Minister Theresa May’s surprise announcement that new elections will be held in early June. May hopes that this step will give her a strong mandate from the British people for the Brexit. “That said, May’s announcement yesterday is unlikely to have any impact on what are likely to be difficult Brexit negotiations between Great Britain and the EU (European Union),” Commerzbank says. “As far as participants on the gold market are concerned, this means yet another political risk factor that should contribute to solid demand for gold.”