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RBC's Gero: Gold Reclaims $1,300 Amid Political Worries, Stock Pullback

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Comex gold is back above the $1,300-an-ounce area, boosted by recent political and geopolitical events, as well as the recent pullback in stocks globally, says George Gero, managing director with RBC Wealth Management. Additional factors the market could focus on after Labor Day include U.S. budget talks, health care and tax reform, all of which boost gold prices, especially as traders continue to worry about North Korea, Russia, Venezuela and the euro zone, especially after the Barcelona terror attack, he says. Some expectations for further Federal Reserve rate hikes are waning, he adds. As of 9:46 a.m. EDT, Comex December gold was $11.80 higher to $1,304.20 an ounce. The contract peaked at $1,306.90, nearly matching the April high of $1,307.

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

 

Commerzbank: Spain Terror Attacks Fuel Gold Demand; ETF Holdings Rise Again

Friday august 18, 2017 09:53

Gold remains on firmer footing, with exchange-traded-fund holdings continuing to rise and the metal helped by geopolitical events, says Commerzbank. “The terrorist attacks in Spain are likely to drive up demand for gold as a safe haven/crisis currency,” analysts report. “The appreciation of the U.S. currency – or rather the depreciation of the euro, as we see it – allowed gold in euros to climb above the €1,100 per troy ounce mark again for the first time since the end of June.” Minutes of the most recent meeting of the European Central Bank, released Thursday, show policymakers have concerns about an overly strong euro. “This could be a first step before verbal intervention if the euro were to further appreciate or the U.S. dollar to further depreciate,” Commerzbank says. “Verbal intervention by the ECB proved successful in stopping the euro from soaring in spring 2014. That said, the U.S. dollar has already come under some pressure again after rumors emerged that Gary Cohn, the candidate primed to succeed Janet Yellen as Fed chair, might step down.” Analysts add that gold ETFs recorded another – albeit moderate – inflow Thursday, meaning that holdings in the gold ETFs tracked by Bloomberg increased for the seventh consecutive day of trading.

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