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Price Futures Group’s Flynn: Gold To Bounce From 'Oversold' Levels

Kitco News

Look for gold to bounce next week, says Phil Flynn, senior market analyst with at Price Futures Group. While modestly higher early Friday, the metal is headed for a lower finish for the week after the Federal Open Market Committee sounded more hawkish than expected, he explains. However, he continues, “we did hold a key support [level] in gold and the market is extremely oversold, so there is a good possibility we’re going to run back higher. Even though the market moved on the Fed story that they are still on track to raise interest rates this year, it shouldn’t be that much of a surprise to the market.” Further, he says, North Korea continues to make “threatening” noises. “That could put a a little bit of a risk premium back into gold,” Flynn says. “And the stock market looks extremely overbought. All of those things could turn the corner.”

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

 

MKS: North Korean Worries Lead To Higher Gold Prices

Friday September 22, 2017 08:18

Gold ticked higher early-Friday trading on renewed worries about North Korea’s weapons program, says Sam Laughlin, senior trader with MKS (Switzerland) S.A. “News out of South Korea reporting that North Korea may consider testing a hydrogen bomb in the Pacific saw investors push back into safe-haven assets during early Asian trade today,” he reports. “There were no concrete details regarding a test; rather, North Korean Foreign Minister Ri Yong Ho was cited as saying that such a test ‘could be the most powerful detonation of an H-bomb in the Pacific.’” Laughlin adds that Chinese interest once again helped bid up prices, as the on-shore premium held around $6 relative to loco London gold. As of 8:13 a.m. EDT, spot gold was $4.70 higher at $1,295.45 an ounce.

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

 

Commerzbank: Swiss Aug. Gold Exports Fewest Since 2014

Friday September 22, 2017 08:18

Swiss customs data show the country, a key conduit for the movement of gold globally, posted its fewest gold exports in three years during August at 71 tonnes. “This was the smallest gold export volume in one month since at least early 2014,” says Commerzbank. Only 15.9 tonnes were exported to India last month, 27% less than last August and the lowest amount in 13 months, the bank continues. Exports to China and Hong Kong totaled 20.7 tonnes, which was down 53% year-on-year figure and the smallest quantity in three years. “Asian gold consumers are therefore displaying increasing price sensitivity (noticeably less gold was also exported to Thailand and South Korea),” Commerzbank says. “For example, gold prices in Indian rupees and in Chinese yuan rose significantly in July and August, which presumably deterred buyers. As such, the gold price is currently lacking one important demand component, for India and China together account for more than half of global gold demand.”

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