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LaSalle’s Nedoss: Gold Above 200-Day Avg.; Resistance At 50-Day

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Comex December gold remains technically constructive since the market has moved higher away from the 200-day moving average around $1,270 an ounce, but it may face a challenge on the upside around the 50-day average, says Charlie Nedoss, senior market strategist with LaSalle Futures Group. He describes himself as short-term bullish. “Technically, we were able to close above some moving averages,” Nedoss says. “We had tested the 200-day.” Nervousness in the equity market about the future of U.S. tax cuts may also help gold. “A close below $1,270 would be a [technical] failure,” he says. “The next resistance I see is around $1,298.40, the 50-day moving average. I think that’s going to be a tough nut for it to crack, but with a little bit of equity-market weakness, we could come up and test it.”

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

 

Walsh’s Lusk: Delay In Tax Cuts Could Cool Stocks, Help Gold

Friday November 10, 2017 10:23

Sean Lusk, director of commercial hedging Walsh Trading, looks for gold to be steady to higher in the coming days amid the uncertainty about prospects for quick passage of tax cuts in the U.S. “The trade is a little worried about this tax reform being kicked down the road,” Lusk says.  These worries have stalled the record run in equities lately. Should this continue, gold may benefit, Lusk says. Gold’s technical-chart picture has been helped by the metal’s ability to trade above its 100- and 200-day moving averages, he adds. However, he adds, bulls want to see the market break up through the top of its recent trading range. If not, the metal could be susceptible to some “back and fill,” Lusk adds.

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

 

RBC’s Gero: Gold Break Above $1,300 Would Attract Buyers

Friday November 10, 2017 10:23

Gold could attract new buyers if the metal can get back above the $1,300-an-ounce area, says George Gero, managing director with RBC Wealth Management. Comex December gold hit its highest level in three weeks on Thursday, peaking at $1,289.05. As of 9:45 a.m. EST Friday, the contract was down $2.10 to $1,285.40 an ounce. “Gold [is] in Friday pullback mode today, but still up 12% this year and may gather more asset allocators if we move above $1,300 decisively,” Gero says. He adds that holiday-related buying begins soon. Keys to the market will include developments in the stock market and tax-reform efforts in the U.S., Gero adds.

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

 

Commerzbank: Uncertainty Underpinning Gold Demand

Friday November 10, 2017 08:26

Political uncertainty and geopolitical worries are continuing to boost demand for gold, says Commerzbank. “For example, U.S. President Trump’s tax plans do not seem to be making as much headway as expected, and the introduction of lower corporate tax[es] has already been delayed,” the bank says. “Visiting China during his tour of Asia, Trump described North Korea as a threat to civilization, ensuring that this crisis continues to smolder. Meanwhile, there is no progress whatsoever in the next round of Brexit talks that began yesterday between the EU and the U.K. The divisions in the British government are one key factor stalling the talks.” Shortly after 8 a.m. EST, spot gold was up 20 cents to $1,285.10 an ounce, not far from Thursday’s $1,288.70 high that was the strongest level since Oct. 20.

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

 

MKS: Gold Subdued In Asia But Drawing Interest

Friday November 10, 2017 08:26

Gold-price movement was “subdued” during Asian-Pacific trade but the metal remains underpinned by a softer U.S. dollar and the debate over tax reform in the U.S., says Sam Laughlin, senior precious-metals trader with MKS (Switzerland) S.A. The precious metal initially drew a bid due to its inverse relationship to the U.S. dollar, but was unable to push through Thursday’s high. “Weakness out of China took bullion toward $1,285 with little movement in the on-shore premium; however, afternoon price action was generally supportive amid further dollar weakness to restrict any further declines,” Laughlin says. “Bullion continues to see interest conducive to further price action toward $1,300, with strength underpinned by the recent news of delays to tax reform out of the U.S. weighing upon the greenback and U.S. equity markets. Expect $1,280 to offer initial support, while below this the 100 DMA [day moving average of] $1,277.50 should see broad support toward $1,275.” Around 7:45 a.m. EST, spot metal was up 40 cents to $1,285.30 an ounce with a high of $1,287.05.

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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