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Gold Lower As Capital Flows Into the US$ On Trade Concerns

Commentaries & Views

(Kitco News) - The dollar continues to attract capital flows as stress continues to increase in some emerging markets. Global consequences to trade with the impending $200 billion in Chinese tariffs due to take effect this Thursday have pushed capital into the perceived safe haven of dollar-denominated assets. Gold dropped on dollar strength and both silver and the PGMs have been hit, not only by gold’s weakness, but also with the perception that slowing international trade will diminish demand for the industrial metals complex. Should the tariff deadline with China be mitigated before Thursday, we would expect a significant bounce in the latter group. Gold needs to recapture the $1,197 level to generate interest. A break below the $1,192 area suggests a retest of $1,180 is probable. Expect increased volatility as global markets are becoming increasingly risky.

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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