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Look For U.S. Economy To Grow 4% In Q2 - CIBC

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The impact of America’s historic tax cuts passed in December will be felt in the second quarter, according to economists from CIBC World Markets. The bank expects U.S. second quarter growth to exceed 4%. “While the remainder of the year won’t look as hot, expected strength in business capital spending will be enough to propel 2018 just under 3% growth,” the analysts say. However, the bank also thinks an uptrend in inflation remains elusive. “The rise in headline inflation hasn’t been mirrored in core measures as gasoline prices have done much of the work, support that will fade in 2019,” the bank adds. According to some analysts, stronger economic growth in a low inflationary environment has been one of the reasons why gold struggled to attract investor attention.

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

Strong Wage Growth Friday Could Send Gold Lower – FXTM

Wednesday July 04, 2018 10:31

The gold market is seeing modest gain in what is a quiet session because of  U.S. Independence Day. In electronic markets, August gold futures last traded at $1,257.30 an ounce, up 0.31% on the day; however, Lukman Otunuga, research analyst at FXTM warns investors that the market is not out of the woods yet. “While the yellow metal has scope to appreciate further amid a softening Dollar, the outlook remains bearish in the medium to longer term. This year, Gold is still at risk to losing more value on the outlook that the Dollar could strengthen further,” he says. “Much attention will be directed towards the US jobs report on Friday which could play a key role in where Gold concludes this week. A strong NFP figure coupled with signs of accelerating wage growth may boost speculation of higher US interest rates – ultimately punishing Gold.” Looking at the technical picture, Otunuga adds that gold needs to push above $1,260 to attract more buying momentum.

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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