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INTL FCStone: Gold To Ease But Hold Chart Support In April

Kitco News

INTL FCStone looks for a stronger U.S. dollar to weigh on gold during April. Analysts forecast that the greenback will benefit as the Trump administration backs away from starting a trade war. Further, the European Central Bank and Bank of Japan are likely to remain “sidelined” on tightening monetary policy, further underpinning the dollar, analysts say. “A stronger dollar and an expected de-escalation in trade tensions should weigh on gold over the course of April and we see the precious metal testing its 2018 low of $1,304, but holding that critical support level,” analysts say in a monthly commodities outlook. “Silver could do somewhat better than gold in April, as proponents of the gold-silver ratio are pointing out that the ratio is now close to a three-year high of around 80.” Meanwhile, analysts look for platinum group metals to move higher during the month, rebounding in sympathy with a firmer base-metals complex.

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

 

FXTM: Gold Eases On Profit-Taking, Underpinned By Trade Jitters

Tuesday April 03, 2018 08:20

Gold has eased on profit-taking in early trading Tuesday but is likely to remain underpinned in the near term due to worries about a trade war between the U.S. and China, says  Lukman Otunuga, research analyst at FXTM. He says some investors opted to lock in profits after the metal had poked above chart resistance around $1,340 an ounce. As of 8:16 a.m. EDT, spot gold was down $1.75 to $1,339.55 an ounce after nearly hitting $1,345 on Monday. “With escalating trade tensions between the U.S and China sparking risk aversion, punishing global equity markets and weakening the dollar, gold could remain heavily supported moving forward,” Otunuga says. Meanwhile, investors are awaiting the monthly U.S. report on nonfarm payrolls on Friday, which will play a big role in where gold ends the week, the analyst continues. “Prior to the NFP report, market uncertainty and overall caution is likely to inspire bulls to push the yellow metal higher,” the analyst continues. “Taking a look at the technical picture, gold has scope to venture higher towards $1,360 if bulls are able to secure control above $1,340. Alternatively, sustained weakness below $1,340 could result in a decline back to $1,324.”

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