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Walsh's Lusk: Gold, Silver Likely To Be Bought On Price Dips

Kitco News

Gold and silver are likely to draw buying on any pullbacks, says Sean Lusk, director of commercial hedging with Walsh Trading. The metals are in fact lower on profit-taking Friday, Lusk says. Previously, they ran up sharply this week on U.S. dollar weakness. “I think the uptrend continues into month end,” he says. He later adds, “These dips are going to provide a buying opportunity as long as weekly trendline support holds.” He puts these levels around $17.30 for Comex March silver and $1,330 for April gold. Lusk says that the trend of buying metals on pullbacks may continue until the Federal Reserve becomes more hawkish. As of 9:16 a.m. EST, nearby Comex February gold was down $13.80 to $1,349.10 an ounce and April was down $13.90 to $1,354.10. March silver was 26.5 cents lower to $17.350.

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

 

Commerzbank: Chinese Gold Imports Down, Silver Imports Up In 2017

Friday January 26, 2018 09:31

China’s gold imports fell in 2017 but silver imports rose, Commerzbank says. Analysts cited data from the Hong Kong government showing that China imported only 31.2 net tonnes of gold from Hong Kong in December, almost 40% less than last year. “The sharp gold price rises in the second half of the month appear to have deterred Chinese gold buyers,” Commerzbank says. Meanwhile, the Hong Kong data show net gold imports in 2017 fell by 18.5% year-on-year to 628.2 tonnes. “This was the lowest figure in five years,” Commerzbank says. “Whereas private household gold demand was largely stable, the Chinese central bank bought no gold at all last year.” However, Chinese silver imports rose last year, the bank says. According to customs authorities, silver imports soared by 28% year-on-year to nearly 4,300 tonnes, achieving a seven-year high. “Last year saw solar-cell production stepped up considerably for the second consecutive year in China, with over 50% more solar panels installed,” Commerzbank says. “This resulted in high demand for silver.” 

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

 

FXTM: Soft Dollar Means More Upside Potential For Gold

Friday January 26, 2018 09:31

Gold could run still higher on U.S. dollar weakness, says Lukman Otunuga, research analyst at FXTM. “The fact that the dollar remains under pressure, despite [U.S. President] Donald Trump recently backing a stronger currency, continues to highlight the lack of buying sentiment,” Otunuga says. “With the greenback likely to remain on the back foot in the near term, gold has further upside potential. Taking a look at the technical picture, the yellow metal is heavily bullish on the daily charts. A weekly close above $1,360 could invite a further appreciation higher towards $1,375.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.