Make Kitco Your Homepage

Goldman Sachs 'Constructive' On Commodities, Including Gold

Kitco News

Goldman Sachs is upbeat on commodities despite recent weakness, looking for gold to be among the markets that rise. Following financial markets, commodity prices sold off sharply over the past week, with the S&P GSCI down 5.6% from the Jan. 26 peak. “This sell-off, however, was less than the 10.2% decline in the S&P 500,” Goldman says. “Ironically, the catalyst for the equity move was rising inflation concerns in the face of strong economic activity indicators, which further reinforces our view that commodity markets are set to outperform other asset classes once the current liquidation flows subside. As is the case for equities, we view this move as primarily positioning, technical and USD [U.S. dollar] driven, with the magnitude of the declines well correlated to both the strength of the prior price trend and the level of speculative length. Despite the sell-off, we find that recent fundamental data is still supportive of our constructive view on the asset class.” On Thursday, Goldman upped its one-year gold forecast to $1,450 an ounce. Goldman analysts cited expectations for recovering demand in emerging-market nations.

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

 

Commerzbank: Investors Sell Gold ETF Holdings To Offset Stock Losses

Friday February 09, 2018 08:56

Some investors have liquidated their holdings in gold exchange-traded funds this week to raise cash due to the sell-off in equities, says Commerzbank.Gold is in demand as a safe haven in the current market environment,” analysts report. “It is trading at just shy of $1,320 per troy ounce after having dipped for a time yesterday to $1,307. So far, however, the buying interest is not evident in the gold ETFs – on the contrary, since the beginning of the week they have seen outflows of nearly 15 tonnes. ETF investors are probably selling gold to offset their losses on the stock markets.”

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

 

FXTM: Expectations For Higher U.S. Rates Pressuring Gold

Friday February 09, 2018 08:56

Gold remains pressured by a stabilizing U.S. dollar and rising expectations of higher U.S. interest rates, says Lukman Otunuga, research analyst at FXTM. “Investors would usually expect gold to benefit from increased stock-market volatility, but this has so far not been the case,” the analyst says. “If speculation continues to increase over developed central banks increasing respective interest rates, gold is at risk to further selling pressure. Focusing on the technical picture, the yellow metal is bearish on the daily charts. Previous support at $1,324.15 could transform into a possible ‘top,' potentially encouraging further declines towards the lower $1,300s.”

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

 

RBC's Gero: Gold Held Back By ‘Rush To Cash'

Friday February 09, 2018 08:56

Gold continues having trouble gaining traction despite this week's weakness in equities, says George Gero, managing director with RBC Wealth Management. A “rush to cash continues as mutual funds see outflows, so gold is still off their [investors'] radar,” Gero says. Meanwhile, he notes that a budget deal that passed Congress averts a government shutdown but adds to deficits. This is important for gold buyers in the long term, as they will recognize inflation, Gero adds. As of 8:37 a.m. EST, Comex April gold was down $1.70 to $1,317.40 an ounce. 

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.