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MKS: Gold Slips Back Below 50-, 100-Day Moving Averages

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Gold has slipped back below its 50- and 100-day moving averages, says Sam Laughlin, senior precious-metals trader with MKS (Switzerland) S.A. As of 8:10 a.m. EDT, spot gold was down $3.15 to $1,246.25 an ounce as traders awaited the outcome of a two-day meeting of the U.S. Federal Open Market Committee Wednesday afternoon. The 50-day average stood at $1,249.40, while the 100-day average was $1,248.80. The metal came under pressure in New York Tuesday, and that pressure continued in Asia-Pacific trading overnight. “The technical break during Asian trade today saw some participants heading for the exits as we near the FOMC rates announcement, and it is difficult to see gold making any headway above $1,250 leading into the Fed,” Laughlin says. “A hawkish tone from Yellen today will open up a test toward the 200 DMA around USD $1,229, while a dovish skew is likely to see a recovery test $1,258-$1,262.”

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

 

Commerzbank: Gold Flows Out Of Exchange-Traded Funds

Wednesday July 26, 2017 08:17

Global gold-backed exchange-traded funds posted “substantial” outflows on Tuesday, reports Commerzbank. Holdings in ETFs tracked by Bloomberg fell by around 7.5 tonnes. “Outflows of 54 tonnes have been seen since the start of the month, reversing almost all the inflows in the whole of the last quarter again,” Commerzbank says. “Virtually all of the outflows were withdrawn from the SPDR Gold Trust.”

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

 

Walsh’s Lusk: Investors Watching Fed For Signs Of Future Policy

Wednesday July 26, 2017 08:17

Investors will be eyeing communications from the Federal Open Market Committee after a meeting Wednesday, trying to gain clues on when the next interest-rate hike is coming, says Sean Lusk, director of commercial hedging with Walsh Trading. Dovish Fed commentary tends to support gold, and vice-versa. “No changes in U.S. monetary policy are expected,” he says. “However, the Fed could indicate the timing of reducing its big balance sheet of U.S. securities. The tone of the FOMC statement will also be important for markets. Just recently, Federal Reserve Chair Janet Yellen has sounded a more dovish tone on U.S. monetary policy.”

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