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FXTM: Gold Pressured By Dollar Despite Pending Trump Announcement

Kitco News

Gold is under pressure due to an appreciating U.S. dollar, says Lukman Otunuga, research analyst at FXTM. As of 9:09 a.m. EDT, spot metal was down $4 to $1,309.60 an ounce. The loss, despite U.S. President Donald Trump’s planned announcement on the Iran nuclear deal Tuesday afternoon, highlights a lack of buying sentiment at the moment, the analyst says. “There is a suspicion that market expectations of higher U.S. interest rates will remain a risk to gold,” Otunuga says. “Taking a look at the technical picture, prices are coming under increasing selling pressure on the daily and weekly charts. Previous support around $1,324 could transform into a dynamic resistance that encourages a decline towards the psychological $1,300 support level.”

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

 

Commerzbank: Asian Gold Demand Subdued

Tuesday May 8, 2018 09:13

Current gold demand in Asia is subdued, says Commerzbank, citing recent news developments out of the world’s two largest gold-buying nations – India and China. “The Chinese central bank also bought no gold in April for the 18th consecutive month,” Commerzbank says. “According to unofficial sources at the Ministry of Finance, gold imports in India totaled just 52.7 tonnes in April, 46% down on the – albeit high – previous year’s level.”

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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