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BMO: Emerging-Market Central Banks To Keep Adding Gold

Kitco News

Central banks in emerging-market nations are likely to keep adding gold to their reserves, says BMO Capital Markets. Analysts offered this view after citing a Bloomberg news report that the Bank of Russia added another 1% to its gold holdings in May, taking its total to 62 million troy ounces. “This continues the trend over the past few years where Russia is selling U.S. Treasuries and allocating more to gold,” BMO says. “We expect global central banks, particularly those in emerging markets, to continue to add to gold holdings at a steady pace over the coming years amid efforts to diversify their reserves.”

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

 

RBC’s Gero: Gold Hits Fresh Lows Due To U.S. Dollar Strength

Thursday June 21, 2018 09:43

Gold prices have hit a fresh low for 2018 after U.S. dollar strength and hawkishly construed comments from central bankers, including Federal Reserve Chair Jerome Powell on Wednesday, says George Gero, managing director with RBC Wealth Management. “Investors have been fleeing gold. Even large ETFs [exchange-traded funds] have lost tonnage, as investors [are] not accumulating as a haven so far and commodity margin calls in many instances have added to gold’s woes,” Gero says. As of 9:14 a.m. EDT, Comex August gold was $7.10 lower to $1,267.40 an ounce.

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

 

Commerzbank: Swiss Exports To China Rise But Those To India Weak

Thursday June 21, 2018 09:43

Commerzbank describes Swiss exports of gold to key Asian nations last month as mixed. Analysts cite data from Swiss Federal Customs Administration. “Switzerland exported more gold again in May, though the picture was mixed as regards gold exports to Asia. Exports to China and Hong Kong climbed noticeably both month-on-month and year-on-year to a combined total of 63.3 tonnes,” the bank says. “By contrast, Swiss gold exports to India were significantly down at only 15.7 tonnes. Indians have been holding back on buying gold for months now because of the high gold prices in local currency. What is more, they imported a lot of gold last year – apparently more than they needed.

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

 

FXTM: ‘Gold Is Firmly Bearish On The Daily Charts’

Thursday June 21, 2018 09:43

Gold’s technical-chart picture is bearish at the moment, says Lukman Otunuga, research analyst at FXTM. The precious metal has been under pressure due to a stronger U.S. dollar for most of the week, the analyst points out. “One would have expected heightened trade concerns to elevate the yellow metal, but prices simply remained at depressed levels,” Otunuga says, citing hawkish comments from Federal Reserve Chair Jerome Powell at a European Central Bank forum. “While uncertainty over global trade tensions may offer some support further down the road, investors seem more concerned with an appreciating dollar and Fed hike expectations,” Otunuga says. “Focusing solely on the technical picture, gold is firmly bearish on the daily charts. Sustained weakness below the $1,280 level could open a path towards $1,260.” As of 9:09 a.m. EDT, spot gold was $2.90 lower to $1,264.70 an ounce.

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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