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Price Group's Flynn: Gold To Bounce After Jobs-Related Price Fall

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Phil Flynn, senior market analyst with Price Futures Group, looks for the current gold weakness – in the wake of a larger-than-forecast rise in U.S. July nonfarm payrolls – to be temporary. “We had a good jobs number and pulled back a little bit,” he says. After a 209,000 rise in nonfarm jobs last month, Comex December gold was down $6.50 to $1,267.90 an ounce as of 9:17 a.m. EDT. Still, Flynn looks for the metal to recover next week. “Our expectation is concerns about the weakness in the [U.S.] dollar are going to continue,” he says. “Also, we get into a more friendly time of year.” Physical gold demand tends to pick up starting in late summer as stocking begins ahead of autumn festivals in India. Further, Flynn adds, some traders may add gold to their portfolios at a time of record-high equities. “There may be some hedging against high stock prices,” in case equities suddenly correct lower, he explains.

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

 

Ira Epstein: Gold Poised To Test Upper Bollinger Band

Friday August 04, 2017 09:34

Ira Epstein, director of the Ira Epstein division of Linn & Associates, looks for Comex gold to move higher, with the metal poised to challenge an upper Bollinger Band around $1,289.60 an ounce. “Given gold’s strong seasonal tendency to rally now, along with the bullish embedded reading signal, offers a strong technical reason for prices to rally,” he says. “Obviously daily news events, especially unforeseen ones always lurk in the background.” He looks for Federal Reserve officials at some point to outline a plan explaining how they will let the assets they’ve bought over the years – during quantitative easing – run off their balance sheet. “However, announcing a plan and explaining how it will work still doesn’t say when it will be enacted, which all benefits gold in the short term,” Epstein says.

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

 

Commerzbank: Central-Bank Gold Buying Would Be ‘Quite A Result’ Given China's Absence

Friday August 04, 2017 09:34

Central-bank gold purchases appear to be on a robust pace in 2017 considering that the People’s Bank of China has not been buying, says Commerzbank. Analyst cite data from a report by the World Gold Council this week showing that central banks purchased 177 tonnes of gold in the first half year, including 95 tonnes in the second quarter. Russia, Kazakhstan and Turkey were noted buyers in the last few months. “For the year as a whole, the WGC envisages central bank purchases of 350-450 tonnes,” Commerzbank analysts report. “This would be quite a result given that the Chinese central bank has bought no gold at all so far this year. Last year, central banks topped up their gold reserves by 390 tonnes.”

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