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FXTM: Gold Prices Remain Bullish On Technical Charts

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Gold’s technical posture on the charts remains constructive, says Lukman Otunuga, research analyst at FXTM. The metal is modestly higher so far Thursday, helped by a softer U.S. dollar. “With the greenback somewhat shaky and still struggling to gain ground, gold is likely to remain supported moving forward,” Otunuga says. “Taking a look at the technical picture, the metal still fulfils the prerequisites of a bullish trend on the daily charts. There have been consistently higher highs and higher lows, while the MACD [moving average convergence/divergence] has crossed to the upside. Bulls remain in control above $1,300 with a solid breakout, and a weekly close above $1,320 opening a path towards $1,333.”

By Allen Sykora of Kitco News;


MKS: Gold Prices Due For 'Constructive Consolidation'

Thursday January 11, 2018 10:52

Gold probably needs to undergo a period of price consolidation after a sharp run-up since last month, says Alex Thorndike, senior precious-metals dealer with MKS (Switzerland) S.A. Comex February gold rose from a mid-December low of $1,238.30 an ounce to a multi-month high of $1,328.60 on Wednesday. The contract was at $1,320.90, up $1.60 for the day, as of 10:25 a.m. EST. “Our view from here is that gold needs to undergo some constructive consolidation,” Thorndike says. “We have risen some $80 since mid-December and given the increase in Comex positioning since then, we feel that there will be sellers on rallies. That being said, as Chinese seasonal buying picks up, the downside should remain supported into February. We feel that a $1,300-1,335 range should hold or the short term.”

By Allen Sykora of Kitco News;


Commerzbank: Chinese Car Sales Supportive For Palladium Prices

Thursday January 11, 2018 10:52

Chinese car-sales data bode well for palladium, says Commerzbank. The metal is used for catalytic converters in gasoline-powered cars, which make up the bulk of the Chinese market. Analysts cite a report from the China Association of Automobile Manufacturers showing that China sold fewer cars in December than in the same period a year ago – around 2.65 million – yet the December figure was the highest of 2017. For last year as a whole, 24.74 million cars were sold, 1.8% up year-on-year. “As such, car sales have risen for at least 12 years in a row…even though dynamism cooled noticeably last year,” Commerzbank says. “In absolute terms, very large numbers of cars were sold in November and December because China completely reversed the tax breaks for buying cars with smaller engines as of 1 January 2018. The CAAM expects an increase in sales of around 3% in 2018. The good Chinese car sales provide a retrospective explanation for last year’s rise in the palladium price and are also likely to support the price this year.” 

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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