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INTL FCStone: Gold To Focus On North Korea, CPI, FMOC

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The key factors for the gold market at the moment are North Korea, Thursday’s report on consumer prices in the U.S. and a meeting next week of the Federal Open Market Committee, says Edward Meir, commodities consultant with INTL FCStone. He notes the “war of words between Washington and Pyongyang continues,” meaning geopolitical tensions that can help gold. “Inflation data out of the U.S. (out tomorrow), coupled with the Fed policy meeting next week, should prove to be the next key inflection points for gold,” Meir says. “Of the two, the Fed meeting will carry more weight and we suspect it will ultimately be supportive for the precious metal, as the Fed should again come across as quite dovish, especially in light of the recent natural disasters unfolding in both Texas and Florida.”

By Allen Sykora of Kitco News;


FXTM’s Otunuga: Gold Remains ‘Attractive’ But May Pause Ahead Of CPI

Wednesday September 13, 2017 10:10

Gold could pause as markets await the U.S. Consumer Price Index on Thursday, but the metal still looks “attractive” overall, says Lukman Otunuga, research analyst at FXTM. “Although North Korean tensions have offered some support to the yellow metal, the upside could be capped ahead of Thursday’s inflation data, the analyst says. “With the pending U.S. CPI release likely to influence expectations over when the Fed will raise rates, gold -- which remains highly sensitive to rate hike expectations -- will be directly impacted.” Weak data should support gold, Otunuga says.  “I believe gold still remains attractive, despite the return of risk appetite, with further upside on the cards as heightened political uncertainty in Washington and geopolitical concerns encourage investors to seek safety,” the analyst continues. Otunuga also describes gold as bullish on a daily technical chart. “A breakout above $1,340 should encourage a further appreciation higher towards $1,350. In an alternative scenario, a breakdown and repeated weakness under $1,325 is likely to encourage a decline towards $1,315 and $1,300, respectively.”

By Allen Sykora of Kitco News;


Gold ETF Holdings Still Rising; Silver ETFs Post Outflows

Wednesday September 13, 2017 07:56

Exchange-traded-fund demand for gold is holding up despite the price drop so far this week, but silver ETF demand has eased, analysts say. In fact, ETF investors used the price drop to add 4.4 tonnes to the holdings of ETFs on Tuesday, Commerzbank says. "Gold ETF holdings climbed to 2,138t yesterday, marking the highest level since mid-November," says commodities brokerage SP Angel. Conversely, Commerzbank reports, outflows have been occurring from silver ETFs for a while now. "They have already amounted to 382 tonnes since the beginning of the month, which is almost as much as in the whole of last month," Commerzbank says. "Nonetheless, the silver price is holding its own relatively well; it is trading at $17.90 per troy ounce this morning and moving largely in tandem with gold." Most precious-metals ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares

By Allen Sykora of Kitco News;


Walsh's Lusk: North Korea Unlikely To 'Just Fizzle Out' As Market Factor

Wednesday September 13, 2017 07:56

Gold has fallen so far this week after Hurricane Irma, which did not cause as much damage as feared, did not prompt safe-haven demand, plus markets concluded that that U.N. sanctions against North Korea will alleviate geopolitical concerns some since they were not as harsh as the U.S. sought, says Sean Lusk, director of commercial hedging with Walsh Trading. This prompted a risk-on environment that led to higher stocks and lower gold on Tuesday. "It’s important to keep in mind, however, that traders are fickle," Lusk says. "Today’s risk appetite (stock-market rally) could quickly turn into tomorrow’s keen anxiety. Don’t expect the U.S.-North Korea dispute of North Korea’s nuclear missiles to just fizzle out. It appears North Korea’s president enjoys his ability to irritate the U.S. How long President Trump puts up with Kim Jong-Un’s intensifying provocations is an unknown."

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