RBC’s Gero: Gold Draws Bargain Hunting, Holds Moving-Average Support
(Kitco News) - Gold is drawing some support from bargain hunting after holding around a widely followed moving average, plus there is buying from geopolitical worries, said George Gero, managing director with RBC Wealth Management.
As of 9:26 a.m. EDT, Comex December gold was $8.20 higher to $1,283.10 an ounce. Gero said the gold market is “back to the basics,” supported by factors that tend to result in safe-haven buying, such as worries about the U.S. political situation, North Korea and Venezuela.
Participants in the key-gold buying nation of China have also returned from a week-long holiday, he noted. Further, gold held at a moving average last week, thus “bargain hunters are slowly stepping in,” he said. December gold held just above the 200-day average that currently passes through $1,259.40 and has now moved back above the 100-day average around $1,279.
Expectations of another Federal Reserve rate hike are pretty much priced into the market, but nevertheless this remains a worry for traders, so rallies could be muted, Gero added.