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MKS's Nabavi: Strong U.S. Dollar Still Pressuring Gold

Kitco News

Gold is on the defensive early Friday on continued U.S. dollar strength, says Afshin Nabavi, head of trading at MKS (Switzerland) SA. Around 8:10 a.m. EDT, Comex August gold was $8.60 lower to $1,238 an ounce. The spot dollar index was up 0.29 point to 95.09. “It looks like the dollar is the king for the time being,” Nabavi says. “It’s put a lot of pressure on the metals.”

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

 

Commerzbank: 19 Tonnes Of Gold Move Out Of ETFs So Far In July

Friday July 13, 2018 08:30

Gold outflows from global exchange-traded funds have totaled 19 tonnes so far in July, reports Commerzbank. “Gold remains completely imperturbable. Or to put it another way – no matter what happens, the gold price does not rise to any significant extent,” analysts say, expressing surprise that gold has not been able to rally despite comments from U.S. President Donald Trump at the NATO summit and negative U.S. interest rates. “Since the end of June, speculative financial investors have been betting for the most part on falling prices and ETF investors are continuing to jettison their holdings,” Commerzbank says. “Yesterday saw ETF outflows of 5.7 tonnes, making for a total of 19 tonnes since the start of the month. Why gold is not profiting from the current turmoil is something that puzzles us more and more each day. We believe the gold price to be undervalued and expect a noticeable recovery in the second half of the year.”

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

 

FXTM’s Otunuga: Gold ‘Still Losing Its Safe-Haven Allure’

Friday July 13, 2018 08:30

Gold, which has been “pummeled” by a broadly stronger U.S. dollar so far this week, remains on the defensive, says Lukman Otunuga, research analyst at FXTM. “The bearish price action witnessed in recent weeks despite the growing risk aversion continues to suggest that gold is still losing its safe-haven allure,” the analyst says. “Bulls have simply failed to garner any support from global trade concerns and this continues to be reflected in prices. With an appreciating dollar and expectations of higher U.S. interest rates eroding appetite for the metal, the outlook remains tilted to the downside.” Technically, a “solid breakdown below $1,240 could encourage a decline towards $1,236 and $1,230, respectively,” Otunuga concludes. As of 8:23 a.m. EDT, spot gold was $9.20 lower to $1,237.70.

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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