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INTL FCStone: Gold May Be Quiet Until Friday Central-Banker Speeches

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Gold may remain subdued until speeches at the end of the trading week from key central bankers, says INTL FCStone. Commodities consultant Edward Meir describes the movement of prices for the yellow metal as “all over the map over the past few days” although generally not far below the $1,300-an-ounce mark. “We suspect that the precious metal will likely not do much of anything until Friday, which is when we will be getting dueling speeches from [European Central Bank] Chief Mario Draghi and Fed Chair Janet Yellen at the Jackson Hole central-banking symposium,” Meir says. He later adds, “We could see gold possibly move higher if the two bankers reiterate their dovish views in light of concern that inflation data is running on the softer side of estimates.” As of 10:13 a.m. EDT, Comex December gold was $2.40 stronger at $1,293.40 an ounce.

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

 

UBS: Catalyst Needed For ‘Convincing Break’ Above $1,300

Wednesday August 23, 2017 08:28

Gold is running into resistance around the $1,300-an-ounce level and may need a stronger catalyst to break convincingly higher, says UBS. Still, “it is encouraging that gold is holding near the highs,” the bank says. Strategist Joni Teves says the impact of geopolitical risks on gold is difficult to anticipate and tends to be volatile and headline-driven. “We maintain this view and think that geopolitical tensions alone are unlikely to trigger a convincing break above $1,300, unless there is a significant escalation in the situation,” UBS says. “Nevertheless, that the downside in gold has been relatively contained despite fluctuations in risk appetite over the past few weeks suggests that there's an underlying appetite to hold gold as a safe haven and hedge against potential tail risks. We hold on to our bullish stance on gold, expecting prices to continue higher against a backdrop of benign real rates, soft dollar, lingering uncertainty and relatively limited exposure, which suggests room for gold allocations to grow. Having said this, although we remain convinced of the direction of travel, we do recognize that there's growing uncertainty on the pace and extent of the uptrend.”

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

 

MKS: Gold Remains In Narrow Range Ahead Of Fed Gathering

Wednesday August 23, 2017 08:28

Spot gold has remained within Monday’s range of roughly $1,281 to $1,294 so far this week as traders await the outcome of an annual Federal Reserve symposium at Jackson Hole, Wyo., this weekend. There have been times in the past where major policy announcements were made at the gathering. “Once again we are stuck within a narrow trading range and the upcoming Jackson Hole conference is likely keeping investors’ powder dry for the time being, in addition to the ever-present headlines generated out of the Korean peninsula,” says Sam Laughlin, senior precious-metals trader with MKS (Switzerland) S.A. “Pricing continues to remain constructive for a further test of $1,300; however, should we see corrective moves to the recent bid tone, broad support around $1,280-$1,285 should continue to restrict further declines.”

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

 

Commerzbank: Chinese Silver Imports Strong In July

Wednesday August 23, 2017 08:28

Chinese customs data show the country imported 373.5 tonnes of silver in July, which is 73% higher than the same month a year ago, says Commerzbank. “At 2,357 tonnes, silver imports in the first seven months of the year were 41% higher than in the same period last year,” the bank continues. “Platinum imports were also significantly up year-on-year in July, which suggests that jewelry demand is picking up. By contrast, palladium imports decreased noticeably, which makes it harder and harder to explain the strength of the palladium price in recent months.”

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