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SP Angel: Russia Hikes Gold Holdings Amid U.S. Sanctions

Kitco News

Russia has increased its official-sector holdings of gold at a time when the U.S. is increasing economic sanctions on the country, says commodity brokerage SP Angel. “Russia increased gold reserves the most in July than any other month this year amid a potential new round of U.S. sanctions,” the firm says. Analysts cited news reports saying that Russia’s central bank bought 26.1 tonnes last month to take its holdings to 2,170 tonnes as Russia diversifies its holdings away from the dollar. “In April and May, Russia cut its holdings of U.S. bills, notes and bonds by around four-fifths and bought more gold,” SP Angel says.

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

 

RBC’s Gero: Bargain Hunting, Soft U.S. Dollar Lift Comex Gold

Wednesday August 22, 2018 09:02

Gold futures are higher, helped by bargain hunting amid a combination of U.S. political worries and geopolitical concerns, along with a softer U.S. dollar, says George Gero, managing director with RBC Wealth Management. Still, he says, traders feel some caution ahead of a scheduled speaking appearance Friday by Federal Reserve Chair Jerome Powell. Traders are trying to gauge whether to expect one or two more U.S. rate hikes this year. Gero notes that factors such as Venezuela devaluing its currency, Greece coming out of a bailout and Argentina drastically raising rates to shore up its currency “adds to gold being rediscovered by bargain hunters.” As of 8:39 a.m. EDT, Comex December gold was $7.70 higher to $1,207.70 an ounce. The September U.S. dollar index was down 0.265 point to 94.885.

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

 

FXTM’s Otunuga: Gold Helped By Soft Dollar But Trends May Not Last

Wednesday August 22, 2018 09:02

Gold has staged a recovery lately in response to U.S. dollar weakness, but this may only be a temporary phenomenon, says Lukman Otunuga, research analyst at FXTM. “Gold bulls were offered ample support in the form of dollar weakness this week,” the analyst says. The September dollar index fell to a low of 94.850 early Wednesday after trading as high as 96.685 one week ago. Conversely, spot gold has nudged back above $1,200 an ounce after a bottom of $1,160.75 last week. “Although prices have staged a solid rebound from the $1,160 yearly low, the outlook remains tilted to the downside,” Otunuga says. “With the dollar poised to recover on heightened U.S. rate-hike expectations and safe-haven demand, gold remains vulnerable to downside losses.” Technically, the analyst says, a “solid break” above $1,200 could mean gold climbs to the $1,216 or $1,230 levels. However, if the metal cannot hold the $1,200 area, prices could sink back to $1,180, Otunuga concludes.

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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