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TDS: Gold Prices To Remain Stuck In $50 Range

Kitco News

Gold may hold for a while in the roughly $1,260-$1,310 range in place since late September, says TD Securities. Some factors have hurt gold lately, such as reports that Stanford economist John Taylor – seen as a hawk – was one of the front-runners to be the next leader of the Federal Reserve, plus weakness in the euro and stronger-than-forecast third-quarter U.S. economic growth. “But, despite the negative precious-metals environment, gold has held firm with only minimal liquidations of long positions,” TDS says. “Looking beyond the December hike, poor inflation data, along with the Fed questioning whether the weaker inflation is indeed transitory, are the main factors keeping investors interested as they question the Fed-s longer-term dots [projections on interest rates]. Further factors keeping gold well supported are the notion that Trump's tax plan will likely take time to get passed, and the ever-present geopolitical tensions with North Korea and the Catalan separation. Also, despite all the worries of Taylor being the next head of the Fed, [Jerome] Powell (the most dovish candidate) remains the betting favorite and on Friday it was said that Trump is indeed leaning his way. Should Powell get the nod, we expect prices will get a boost and head back toward $1,300/oz into 2018, but are unlikely to head much higher until it becomes clear that the Fed will not stick to the inflation outlook later in 2018.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

MKS: Gold Traders Have Full Plate Of Events To Eye

Tuesday October 31, 2017 09:15

Gold investors have a number of events and developments to monitor this week, including the potential next Federal Reserve chair nomination, a two-day meeting of the Federal Open Market Committee that ends Wednesday, updates to potential U.S. tax reforms and developments regarding special counsel Robert Mueller's investigation of links between President Trump’s campaign and Russia, says Sam Laughlin, senior precious-metals trader with MKS (Switzerland) S.A. “Indications are that President Trump is leaning toward [Fed Governor Jerome] Powell as the next Federal Reserve chair, with the decision expected to be made on Thursday,” Laughlin says. “Fed policymakers begin their two-day meeting today and while no major changes to monetary policy are expected, the statement released on Wednesday at the conclusion of the meeting will be scrutinized for clues as to whether the committee is likely to go ahead with the expected interest-rate increase in December.”

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