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RBC's Gero: Bargain Hunting, Short Covering Lift Gold

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Gold has rallied on bargain hunting and traders buying to cover, or offset, short positions, says George Gero, managing director with RBC Wealth Management. As of 9:28 a.m. EDT, Comex June gold was $10.20 higher to $1,315.80 an ounce two days after hitting the low for 2018 of $1,302.30. Gero cites a “weaker dollar for now” in the aftermath of a Federal Reserve meeting that wrapped up on Wednesday, as well as softer equities, for the bounce in gold. He adds that gold “was off the funds’ radar and has not yet regained interest it deserves.”

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

 

INTL FCStone: Gold Gets Technical Bounce After Holding Chart Support

Thursday May 3, 2018 09:45

INTL FCStone says the bounce in gold may be largely technical in nature, although a softer U.S. dollar is helping. As of 9:28 a.m. EDT, Comex June gold was $10.20 higher to $1,315.80 an ounce. “Gold prices are up today…but we think that this is really a technical move higher since key support [near] $1,303 (the 2018 low) was hit earlier this week and held on a closing basis,” the firm says. “The fact that the dollar rally has stalled somewhat (as has the rate spike basis the 10-year) may also be helping gold as well.”

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

 

FXTM: Gold’s Ability To Hold $1,300 May Encourage More Buying

Thursday May 3, 2018 09:45

More market participants may be willing to buy gold now that the precious metal has held the psychologically important $1,300-an-ounce level during a recent pullback, says Jameel Ahmad, global head of currency strategy and market research at FXTM. As of 9:28 a.m. EDT, Comex June gold was $10.20 higher to $1,315.80 an ounce. “The ability of gold to defend the psychological support level of $1,300 will encourage investors to consider adding gold to their portfolio around its current levels,” the analyst says. “If the trade talks between the United States and China do hit a wall, as many anticipate, during the early phases, it would provide encouragement for investors to search for gold as a safe-haven asset. The Japanese yen would also likely benefit if the trade talks between the U.S. and China did lead to a period of renewed uncertainty in the market.”

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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