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INTL FCStone: Gold Higher; Cautious Ahead Of GDP Data

Kitco News

Precious metals have ticked higher, but INTL FCStone analysts say they would be cautious until after a report on U.S. gross domestic product late in the week. As of 7:52 a.m. EDT, spot gold was $8.10 higher to $1,232.40 an ounce, while silver was 12.6 cents stronger at $15.572. Platinum and palladium were posting “decent gains” for the second day in a row, INTL FCStone points out. “The weaker dollar is providing some support to the group, but we would be cautious about going long heading into Friday's key second-quarter U.S. GDP report,” INTL FCStone says. “We think anything north of the consensus forecast of 4.2% will likely spark another dollar rally and possibly short-circuit the tentative advance we are currently seeing.”

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

 

MKS: ‘Gold Seems To Be Trying To Find A Base’

Wednesday July 25, 2018 08:12

Gold is showing signs of stabilizing after a recent one-year low, with exchange-traded-fund holdings picking up again, says MKS (Switzerland) S.A. As of 7:52 a.m. EDT, spot gold was $8.10 higher to $1,232.40 an ounce, thus recovering some $20 since the low near $1,212 last week. “Gold seems to be trying to find a base at present, so we feel a little bit of work is likely to be done between $1,205-1,235 in the coming week or so,” MKS says. “Further, we feel a break and close below/above either of these levels will likely build momentum in their respective directions. This week has seen some positive inflows for ETFs after a month of heavy liquidation, which when coupled with Comex spec short positioning sitting at multi-year highs, may finally be giving bulls some form of encouragement.”

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

 

FXTM: Rate-Hike Expectations Threaten Any ‘Meaningful’ Gold Gains

Wednesday July 25, 2018 08:12

Prospects for further U.S. rate hikes could limit any upside for gold, says Lukman Otunuga, research analyst at FXTM. He says the gold outlook remains bearish on the daily charts, and there is room for further losses as the U.S. dollar stabilizes. “Although global trade tensions could accelerate the flight to safety and support appetite for safe-haven gold, any meaningful gains are likely to be threatened by U.S. rate-hike expectations,” Otunuga says. “Gold bears need to attack and conquer $1,213 for prices to sink towards the psychological $1,200 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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