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RBC's Gero: Gold May Start Drawing Bargain Hunting

Kitco News

Comex gold is getting a bid from short covering and may start drawing bargain hunting as well, says George Gero, managing director with RBC Wealth Management. As of 9:24 a.m. EST, December gold was $3.10 higher to $1,272.30 an ounce. “After [William] Dudley resignation story from Fed, new selection of [Jerome] Powell [as next Fed chair] and escalation of worries possible with Saudi Arabia tumult, North Korea, Russia, Venezuela default on bonds all now back in headlines…this could slowly bring bargain hunters back to the metals,” Gero says.

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

 

BBH: Investment Climate ‘Healthy’ But Investors Feel ‘Angst’

Monday November 6, 2017 08:34

The broad investment climate seems “healthy” although there also is “much angst,” says Brown Brothers Harriman. “There seems to be a synchronized expansion under way,” BBH says. “The U.S. just strung together its best two quarters of growth since 2014. The euro zone and Japan are growing above trend. The large emerging-market economies and many others are participating too.” Price pressures in key economies remain modest and interest rates are low, BBH says. Further, unemployment rates are falling.  Still, “below the surface, there is much angst,” BBH says. “Central bankers are concerned that price pressures are too low, leaving aside the Bank of England. This leads to unusually low policy rates and fears of the misallocation of capital and asset bubbles. Although populism-nationalism has not swept into power, the broader push against the elites continues.” There seems to be a “high degree of economic anxiety/insecurity and, while the disparity of wealth is part of the public discourse, it has intensified.”

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

 

MKS: Gold Between 100, 200-Day Moving Averages

Monday November 6, 2017 08:34

Gold is currently between its 100- and 200-day moving averages, points out MKS (Switzerland) S.A. Physical interest out of the Far East helped gold make a leg higher overnight, with the on-shore premium in China at $10 for the majority of the session, MKS says. Gold traders will be looking for the area between $1,265 and $1,270 to restrict further downside moves, with further interest below this at the 200-day moving average around $1,262, MKS says. Gold has been above the 200-day average since mid-July. The initial technical-chart hurdle to the topside sits at the 100-day moving average around $1,276.50, MKS says. As of 8:19 a.m. EST, spot gold was up $1.80 to $1,271.30 an ounce.

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

 

SP Angel: Trump’s Asian Tour Could Offer Support To Gold

Monday November 6, 2017 08:34

Gold could draw a bid during U.S. President Donald Trump’s 12-day Asian tour, says commodities broker SP Angel. “The trip looks to present a united front with Japan, as a military deal with the ally aims to ‘qualitatively and quantitatively’ enhance its defense capabilities with American military equipment given the ‘very tough’ North Korea situation,” SP Angel says. Gold traders will be watching to see whether any further saber-rattling occurs between the U.S. and North Korea, a number of analysts have said. North Korea has said it wants to develop a missile capable of striking the U.S. mainland and has fired two missiles over Japan.

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 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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