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$1,300 Gold Coming Sooner Rather Than Later - RBC's Gero

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With gold prices rallying again as inflation data disappoints, one veteran market watcher says the metal is poised for further gains. “With higher open interest, higher volume, higher closes and higher moving averages coupled with some worriers in stocks globally, we could see $1,300 earlier than year end,” said RBC’s George Gero in an email to clients Friday. The metal is just shy of that level, getting a boost from weaker than expected Consumer Price Index data. The inflation read rose by 0.1% in July while consensus forecasts were calling for a 0.2% print. Gold has cooled off a bit, last trading at $1,290 an ounce, relatively flat on the day.

By Sarah Benali of Kitco News; sbenali@kitco.com

 

USD Could See A Short Squeeze If CPI Data Is Stronger Than Expected - BNP Paribas

Friday August 11, 2017 08:19

With the market positioning very short against the U.S. dollar, currency analysts are warning investors that there is room for a short squees in the greenback if U.S. Inflation data is stronger than expected. The analyst note that there is a lot of focus on today’s Consumer Price Index data has the last four consecutive months have come in weaker than expected. “Our economists expect a somewhat improved, but still soft, data point. In line with expectations, they forecast core CPI inflation to remain steady at 1.7% y/y and headline inflation to accelerate to 1.8%. We think the USD should be sensitive to an upside surprise given the large short USD positioning as signalled by BNP Paribas FX Positioning Analysis,” they say.

By Neils Christensen of Kitco News; nchristensen@kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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