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TDS: Gold Making Higher Lows But Needs Catalyst

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Gold prices have shown an encouraging chart pattern of higher lows lately yet probably need some kind of fresh news catalyst to make the next leg up, says TD Securities. The metal got a lift last week from a softer U.S. dollar and concerns about U.S. tax plans. “Gold and silver continued to exhibit little momentum, but we have witnessed a trend of higher lows,” TDS says. “The precious metals are in need of a catalyst to force a breakout higher — additional disappointment on the oft-cited and promised U.S. tax plan or a meaningful equity correction could well be a catalyst for a move higher. With that, any convincing move above $1,290/oz could see the yellow metal test recent highs in the mid-$1,300s.”

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

 

BBH: Euro Upticks Corrective In Nature

Tuesday November 14, 2017 09:39

Brown Brothers Harriman is viewing bouts of euro strength as nothing more than corrections, with yields continuing to favor the U.S. dollar. Analysts say the euro’s rise through $1.17 was the result of stronger-than-forecast German gross domestic product. “Against the dollar, the euro is extending the recovery that began last week from about $1.1555 (the lowest level in four months) and is above the 20-day moving average (~$1.1685),” BBH says. Analysts later add: “We view these euro upticks as corrective in nature and note that the U.S. two-year premium over Germany continues to widen.” As of an early-day research note, the U.S. two-year yield stood near 2.43%, up 40 basis points in the past two months. Precious-metals traders tend to monitor moves in the euro/dollar cross rate due to its correlation with gold.

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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