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FXTM: U.S. Dollar Weakness May Mean More Shine In Gold Prices

Kitco News

Gold has edged modestly higher again early Tuesday in response to currency-market movements, and the yellow metal may have more upside in store, assuming the U.S. dollar continues to cooperate, says Lukman Otunuga, research analyst at FXTM. Gold tends to move inversely to the greenback. Shortly before 8:30 a.m. EDT, spot gold was $1 higher at $1,211.80 an ounce. “Gold prices edged to a fresh two-week high on Tuesday thanks mostly to a depreciating U.S. dollar,” Otunuga says. “The fact that the yellow metal continues to appreciate despite global risk sentiment boosted by the U.S.-Mexico trade breakthrough just further highlights how gold remains heavily influenced by the dollar. With the greenback likely to experience further weakness following [Federal Reserve Chair Jerome] Powell’s dovish speech at the Jackson Hole symposium, gold has scope to appreciate further.”

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

 

Commerzbank: China's Gold Demand 'Subdued' During July

Tuesday August 28, 2018 08:42

Trade data, released at the start of the week by the Census and Statistics Department of the Hong Kong government, confirms that gold demand in China remains “subdued,” says Commerzbank. The report shows that China imported only 44.8 tonnes of gold, on a net basis, from Hong Kong in July – significantly less than either the prior month or July of 2018. The year-on-year shortfall since the start of the year has widened again to 19% or 87 tonnes. “The Swiss gold trading data published last week had already indicated weak Chinese gold demand,” Commerzbank says. 

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

 

MKS: Gold Faces Resistance From $1,215 To $1,220

Tuesday August 28, 2018 08:42

A $5 range, starting at $1,215 an ounce, provides a technical-chart resistance level for gold, says MKS (Switzerland) S.A. Analysts report an uptick in prices during Asia-Pacific trade on U.S. dollar weakness, although the Shanghai gold premium dipped toward $4. “Bullion will need to break through the $1,215-$1,220 resistance level to test the recent build-up in short positioning, with a squeeze likely to target resistance around $1,240,” MKS says. Shortly before 8:30 a.m. EDT, spot gold was 90 cents higher at $1,211.70 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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