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FXTM: Gold Prices Awaiting Catalyst To Spur Safe-Haven Buying

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Gold may need a fresh catalyst to surge again, says Lukman Otunuga, research analyst at FXTM. As of 9:05 a.m. EDT, spot metal was $2.30 higher to $1,298.10 an ounce. “There is a possibility that safe-haven gold could be waiting for the G7 [Group of 7] summit on Friday to make its next big move,” Otunuga says. “Although global trade fears remain a dominant market theme, the yellow metal clearly needs a fresh catalyst to accelerate the flight to safety. This much-needed catalyst could come in the form of [U.S. President] Donald Trump if he creates chaos and uncertainty during the summit. A fresh wave of risk aversion birthed from heightened trade fears could elevate gold towards $1,300 and beyond.” Turning to the technical charts, Otunuga says a solid breakout above $1,300 could encourage an incline higher towards $1,324. “Alternatively, sustained weakness below this level may open a path back towards $1,280,” the analyst concludes.

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

 

Commerzbank: Gold May Stay Below $1,300 Until FOMC Meeting

Wednesday June 6, 2018 09:14

Gold may have trouble breaking significantly above the psychological $1,300-an-ounce level until after next week’s meeting of the U.S. Federal Open Market Committee, says Commerzbank. As of 9:05 a.m. EDT, spot metal was $2.30 higher to $1,298.10 an ounce. Fed policymakers are widely expected to hike interest rates another 25 basis points. This tends to hurt gold by underpinning the U.S. dollar and increasing the so-called “opportunity cost” – or lost interest income – of holding a non-yielding asset like precious metals. “Gold is again battling with the $1,300-per-troy-ounce mark,” Commerzbank says. “So far it has been unable to exceed it in any lasting fashion, however, no doubt partly because of the upcoming Fed meeting. This is because the U.S. Federal Reserve will in all likelihood raise interest rates again next week, which probably precludes any noticeable rise in the gold price until then.”

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

 

SP Angel: Gold Rises As U.S. Dollar Softens

Wednesday June 6, 2018 09:14

Gold has risen for the second day in a row as investors “buy on [the] dip” after recent weakness and as the U.S. dollar slips ahead of next week’s meeting of the Federal Open Market Committee, says commodities brokerage SP Angel. “Fed policy makers are widely expected to raise interest rates during the June 12-13 meeting, with interest in gold suggesting a dollar correction to extend beyond the meet[ing],” SP Angel says. As of 9:05 a.m. EDT, spot metal was $2.30 higher to $1,298.10 an ounce. Just ahead of this, the spot dollar index was 0.27 point lower to 93.628.

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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